Position Management
Learn how to monitor and manage your open positions on Hyperliquid.
Overview
After placing orders, you'll have open positions that require monitoring and management. Atract provides real-time position tracking and tools to manage your exposure effectively.
Viewing Your Positions
Position Panel
The positions panel (below the chart) displays all your open positions:
Key Information:
Symbol: Asset you're trading (BTC, ETH, etc.)
Size: Position size (positive = long, negative = short)
Entry Price: Average price you entered at
Mark Price: Current market price
Liquidation Price: Price at which position is liquidated
Unrealized PnL: Current profit/loss (not yet closed)
Realized PnL: Profit/loss from closed portions
Position States
Active Positions:
Displayed in the positions panel
Update in real-time as market moves
Can be modified or closed at any time
Closed Positions:
Moved to trade history
Realized PnL is finalized
Used for analytics and reporting
Closing Positions
Full Close
To close an entire position:
Find the position in the Positions tab
Click Close Position
Confirm the action
Result: A market order is placed for the full position size in the opposite direction.
Example:
Current Position: Long 1.0 BTC
Action: Close Position
Result: Market sell 1.0 BTC
Final Position: 0 BTC (flat)Partial Close
To close part of a position:
Create a new order in the opposite direction
Set size to amount you want to close
Enable Reduce Only to prevent flipping
Submit order
Example:
Current Position: Long 1.0 BTC
Action: Sell 0.5 BTC (Reduce Only)
Result: Position reduced to Long 0.5 BTCUsing Reduce-Only Orders
Reduce-Only ensures orders only close positions, never increase them:
Protects against accidentally opening a larger position
Useful for automated stop-losses and take-profits
Available for both market and limit orders
Best Practice: Always use reduce-only when closing positions to avoid mistakes.
Position Sizing
Maximum Position Size
Hyperliquid enforces position size limits per asset:
BTC: Up to ~100 BTC per position
ETH: Up to ~1,000 ETH per position
Alt coins: Varies by liquidity
Check current limits on Hyperliquid before placing large orders.
Effective Leverage
Your effective leverage depends on:
Position size
Account equity
Unrealized PnL
Formula:
Effective Leverage = Position Value / Account EquityExample:
Position: 1.0 BTC at $50,000 = $50,000
Account Equity: $10,000
Effective Leverage: 5xMargin Requirements
Hyperliquid uses cross-margin by default:
All positions share the same margin
Profits from one position offset losses in another
Liquidation affects entire account, not individual positions
Initial Margin: Required to open position (~10-20% depending on leverage) Maintenance Margin: Required to keep position open (~5-10%)
Liquidation Management
Understanding Liquidation
Liquidation occurs when:
Mark price hits your liquidation price
Account margin falls below maintenance requirement
Result:
Position is automatically closed by exchange
Remaining equity (if any) is returned
Liquidation fee is charged (~0.5%)
Liquidation Price
For Long Positions:
Liquidation Price = Entry Price × (1 - 1/Leverage + Maintenance Margin Rate)For Short Positions:
Liquidation Price = Entry Price × (1 + 1/Leverage - Maintenance Margin Rate)Example (Long):
Entry: $50,000
Leverage: 5x
Maintenance: 5%
Liquidation: ~$42,000Preventing Liquidation
Strategies:
Add Margin: Deposit more USDC to increase equity
Reduce Position: Close part of position to lower risk
Use Lower Leverage: Enter with less leverage initially
Set Stop-Losses: Automatically close before liquidation
Vault Trading: Remember that drawdown limits may pause your vault before liquidation occurs.
Monitoring PnL
Unrealized PnL
Unrealized PnL (UPnL) updates in real-time as prices move:
Positive UPnL: Position is profitable
Negative UPnL: Position is losing
Formula:
Long UPnL = Size × (Mark Price - Entry Price)
Short UPnL = Size × (Entry Price - Mark Price)Note: UPnL is not guaranteed until you close the position.
Realized PnL
Realized PnL (RPnL) is locked in when you close a position (fully or partially):
Added to your account balance
Cannot be lost if market reverses
Used for performance analytics
Example:
Open: Buy 1.0 BTC at $50,000
Close: Sell 1.0 BTC at $52,000
Realized PnL: $2,000 (locked in)ROI Calculation
Return on Investment measures percentage gain/loss:
ROI = (Realized PnL / Initial Margin) × 100%Example:
Initial Margin: $10,000
Realized PnL: $2,000
ROI: 20%Risk Management Best Practices
Position Limits
Personal Trading:
Limit exposure to 50-70% of account equity
Keep buffer for margin calls and volatility
Vault Trading:
System limits orders to 80% of vault balance
Additional 20% buffer for safety
Stop-Loss Orders
Always set stop-losses to protect against large losses:
Calculate max acceptable loss (e.g., 2% of equity)
Set stop price at that level
Use reduce-only to ensure it closes position
Example:
Entry: Long BTC at $50,000
Max Loss: 2% = $1,000
Stop Price: $49,000Take-Profit Orders
Lock in gains by setting take-profit levels:
Set limit order at target price
Enable reduce-only
Order automatically closes position when hit
Strategy:
Take partial profits at multiple levels
Let remaining position run
Vault Position Management
When trading with vault capital, additional considerations apply:
Drawdown Monitoring
Max Drawdown Limit:
Set when vault is created
Example: 20% max drawdown = vault pauses if balance drops 20% below peak
Daily Drawdown Limit:
Short-term protection
Example: 5% daily = vault pauses if balance drops 5% in one day
See Risk Controls for details.
Position Audit Trail
All vault trades are logged:
Order ID, symbol, side, size, price
Timestamps and execution status
Available in vault management dashboard
Transparency: Investors can see full trade history.
Vault Status Check
Before managing positions, always check:
Vault status (ACTIVE, PAUSED, CLOSED)
Current drawdown level
Deal deadline (time remaining)
If vault is paused:
You can close positions
You cannot open new positions or increase size
Troubleshooting
Issue: Cannot close position
Cause: Insufficient liquidity in opposite direction.
Solution:
Use market order instead of limit
Close in smaller chunks
Wait for liquidity to improve
Issue: Position liquidated unexpectedly
Cause: Mark price hit liquidation level during volatility.
Solution:
Use lower leverage next time
Set stop-losses well above liquidation
Add margin during drawdowns
Issue: "Vault paused" when trying to close
Cause: Vault was paused by risk controls.
Solution:
Closing positions is still allowed (reduces risk)
Use reduce-only market orders
Check drawdown status in vault panel
Issue: Unrealized PnL not updating
Cause: WebSocket connection issue.
Solution:
Refresh the page
Check internet connection
PnL will sync with Hyperliquid on next update
Advanced Techniques
Scaling In/Out
Scaling In (building position gradually):
Buy 0.3 BTC at $50,000
Buy 0.3 BTC at $49,000 (dip)
Buy 0.4 BTC at $48,000 (deeper dip)
Total: 1.0 BTC, lower average entryScaling Out (taking profits gradually):
Position: Long 1.0 BTC
Sell 0.3 BTC at $52,000 (first target)
Sell 0.3 BTC at $54,000 (second target)
Sell 0.4 BTC at $56,000 (final target)Hedging
Use correlated assets to reduce risk:
Long BTC, Short ETH (if expecting BTC to outperform)
Hedge vault position with personal position
Reduce directional risk while keeping market exposure
Caution: Hedging ties up more margin.
Position Averaging
Averaging Down (adding to losing position):
Lowers average entry price
Increases risk if market continues against you
Only use if thesis unchanged
Averaging Up (adding to winning position):
Ride the momentum
Increase exposure to profitable trade
Manage risk with trailing stops
Next Steps
Risk Controls - Understand vault risk management
Placing Orders - Review order types
Analytics Dashboard - Track performance
Related Pages
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