How to short on Hyperliquid
On Hyperliquid you short with perpetual futures: you open a position that gains when the price falls. You don't need to borrow the asset, and you can short crypto and, through HIP-3 markets, stocks and commodities.
Step by step
- Set up and deposit USDC. Use the HYQUID link for 4% off fees. Full setup: beginner tutorial.
- Pick the perp market on the Trade page, for example ETH. Make sure it's the perpetual, not spot. On spot you can only sell what you already own.
- Choose isolated margin and low leverage, such as 2x to 3x.
- Select Sell / Short in the order panel and enter the size.
- Add a stop loss above your entry. For a short, the danger is the price going up.
- Submit, then check the position and its liquidation price.
- To close, buy back the same size (Market or Limit close in the positions panel).
A worked example
| Position | Short $1,000 of ETH at 5x |
| Margin used | $200 |
| ETH falls 10% | Profit about $100, before fees and funding |
| ETH rises 10% | Loss about $100, half your margin |
Leverage multiplies both directions. At higher leverage, a smaller move up gets you liquidated.
Funding when you're short
Funding is exchanged every hour between longs and shorts. When the rate is positive, longs pay shorts, so a short receives funding. When it's negative, shorts pay. Check the rate before holding a short for days. See funding rates explained.
Risks specific to shorting
- No price ceiling: a price can keep rising, so losses can grow fast. A stop loss is essential.
- Squeezes: crowded shorts can be liquidated in a sharp spike.
- Stock perps after hours: HIP-3 stock markets can gap at the open. See trading stocks on Hyperliquid.
Read leverage and liquidation and order types before you short with real size.
FAQ
Can you short on Hyperliquid?
Yes. Open a short position on a perpetual futures market by selecting Sell / Short. It gains when the price falls.
Do I need to borrow coins to short on Hyperliquid?
No. Perpetual futures let you short without borrowing the asset.
Can I short stocks on Hyperliquid?
Yes, through HIP-3 stock perps such as those run by trade.xyz, which can gap when the real market reopens.
Do shorts pay funding?
It depends on the rate. When funding is positive, longs pay shorts; when it's negative, shorts pay longs. Funding is exchanged hourly.