# Order Book The **Hyperliquid Order Book** is the backbone of trading on the platform, designed to function similarly to centralized exchanges but with the advantage of being fully **on-chain**. This ensures transparency and fairness while maintaining high-speed matching and robust operations. *** ### **Overview of the Order Book** ๐Ÿ“˜ * **Core Functionality:**\ Each asset has its own order book, where orders are matched based on **price-time priority**. * **Tick Size and Lot Size:** * Prices are placed as integer multiples of the **tick size**. * Sizes are specified as integer multiples of the **lot size**. * **On-Chain Matching:**\ All operations occur directly on-chain, integrating seamlessly with the **Clearinghouse** to ensure margin and position checks are consistently enforced. #### **Key Features**: 1. **Fully On-Chain:**\ Transparent and verifiable, with every operation recorded on the blockchain. 2. **Margin-Integrated:**\ Margin checks are conducted when orders are placed and again when they match, ensuring resilience against oracle price fluctuations. 3. **Fair Matching:**\ Orders follow a **price-time priority**, rewarding earlier placement at the same price level. *** ### **Order Types** ๐Ÿ›’ Hyperliquid offers a wide range of order types, catering to diverse trading strategies: #### **Primary Order Types**: * **Market Order:** Executes immediately at the current market price. * **Limit Order:** Executes at the specified limit price or better. * **Stop Market Order:** A market order activated when the price hits the stop price, used to **limit losses** or **lock in profits**. * **Stop Limit Order:** A limit order triggered at a selected stop price. #### **Advanced Order Types**: * **TWAP (Time-Weighted Average Price):** Divides a large order into smaller sub-orders executed at intervals to minimize market impact. * **Details:** Sub-orders execute every **30 seconds**, targeting the TWAP schedule while limiting slippage to **3%**. * **Scale Orders:** Places multiple limit orders within a defined price range to capture volatility effectively. *** ### **Order Options** โš™๏ธ * **Reduce Only:** Ensures the order only reduces an existing position rather than opening a new one in the opposite direction. * **Good Til Cancel (GTC):** The order remains on the book until filled or canceled. * **Post Only (ALO):** Adds an order to the book without executing it immediately. * **Immediate or Cancel (IOC):** Cancels the order if itโ€™s not immediately filled. * **Take Profit (TP):** Triggers a market or limit order to close a position at a specific profit level. * **Stop Loss (SL):** Triggers a market or limit order to close a position at a specified loss threshold. #### **TP/SL Orders**: * **Mark Price Triggered:** TP/SL orders are activated using the **mark price** for accurate execution. * **Drag-and-Drop Editing:** Modify TP/SL directly on the TradingView chart. * **Market vs. Limit TP/SL:** * **Market:** Executes with a 10% slippage tolerance. * **Limit:** Allows traders to control slippage with aggressive or conservative limit prices. *** ### **Contract Specifications** ๐Ÿ“ Hyperliquidโ€™s perpetual contracts are designed for simplicity and efficiency, catering to both institutional and retail traders. * **Linear Perpetuals:** Collateralized with **USDC**, but prices are denominated in **USDT** for liquidity and accessibility (technically quanto contracts) * **No Expiration:** Funding payments align perpetual prices with spot prices over time * **Maximum market order values:** **$15M** (leverage โ‰ฅ25), **$5M** (leverage 20-25), **$2M** (leverage 10-20), **$500K** (lower leverage) * **Maximum limit order values:** **10x** the corresponding market order limit * **Margin options:** Cross or isolated margin per wallet *Note: PURR-USD and HYPE-USD are denominated in USDC due to their primary liquidity source being Hyperliquid spot.* [Read more about Contract Specifications](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/contract-specifications) *** ### **Index Perpetuals** ๐Ÿ“Š In addition to spot-based perpetuals, Hyperliquid offers **index perpetual contracts**, which track formulas instead of spot prices. * **Mechanism:** Validators periodically report the index formula's value, which is used instead of a spot oracle price for funding calculations * **Current indices:** **NFTI-USD** (blue-chip NFT collections) and **FRIEND-USD** (friend.tech subjects) * **Function:** Work exactly like normal perpetual contracts but track custom formulas rather than asset prices [Learn more about Index Perpetuals](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/index-perpetual-contracts) *** ### **Hyperps (Hyperliquid-Only Perps)** ๐Ÿš€ A unique offering by Hyperliquid, **Hyperps** are perpetual contracts that don't require an external spot or index oracle price. * **Funding Rates:** Determined relative to an **8-hour exponential moving average** of the mark price, reducing susceptibility to manipulation * **Conversion to Vanilla Perps:** Once the underlying asset becomes widely traded on major platforms (**Binance, OKX, Bybit**), Hyperps transition to standard perpetual contracts * **Trading Restrictions:** **Low leverage** and **isolated margin only** - higher risk due to low liquidity, high volatility, and potentially extreme funding rates โš ๏ธ **Important:** Heavy price momentum creates strong funding incentives for opposite positions over the next 8 hours. Only trade contracts you fully understand. [Explore more about Hyperps](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/hyperps) *** ### **Perpetual Assets** ๐ŸŒ Hyperliquid supports trading for **100+ assets**, with new listings influenced by community input. The protocol is transitioning to a **permissionless listing process** through [HIP-3](/wiki/architecture/hypercore/hips/perp-deployments-hip-3.md) **(Builder-Deployed Perpetuals)**. *** The **Hyperliquid Order Book** combines the best features of centralized exchanges with the transparency and security of decentralized systems. By supporting diverse order types and contract styles, Hyperliquid ensures a robust and flexible trading experience for all users. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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