# How to Trade Perpetuals on Hyperliquid: Step-by-Step Guide

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**Publisher:** Decentralized Finance Publication
**Difficulty:** Intermediate · **Read time:** 10 min read

## Summary

To trade on Hyperliquid: go to app.hyperliquid.xyz, connect your wallet, deposit USDC via the Arbitrum bridge, select a perpetual market (BTC, ETH, SOL, etc.), choose long or short, set leverage and size, and submit your order. Hyperliquid uses an on-chain order book with no gas fees for trading. Monitor your liquidation price and funding rate payments on the Positions tab.

## Before you start: understand the risks

Perpetual futures allow leveraged trading — profits and losses are amplified. A 10× leveraged long on ETH loses 100% of margin if ETH drops 10%. Hyperliquid liquidates positions automatically when margin falls below maintenance requirements. Only trade with capital you can afford to lose entirely.

## Step-by-step: Your first Hyperliquid trade

### Step 1: Go to app.hyperliquid.xyz

Open app.hyperliquid.xyz in your browser. Connect an EVM wallet (MetaMask, Rabby, or WalletConnect). Hyperliquid uses your wallet as identity — no separate account registration.

### Step 2: Deposit USDC margin

Click 'Deposit' and bridge USDC from Arbitrum (or other supported chains) to Hyperliquid L1. Confirm the bridge transaction in your wallet. USDC appears as your trading margin balance.

### Step 3: Select a market

Choose a perpetual market from the list — BTC-PERP, ETH-PERP, and SOL-PERP have the deepest liquidity. Review the current mark price, 24h volume, and open interest.

### Step 4: Place an order

Click Long (bullish) or Short (bearish). Set your order type: Market (instant fill) or Limit (specific price). Adjust leverage slider (1× to 50× — start low). Enter position size in USD. Review liquidation price before confirming.

### Step 5: Monitor your position

Open Positions tab to see unrealised PnL, liquidation price, and funding payments. Funding is exchanged between longs and shorts every hour — check whether you are paying or receiving.

### Step 6: Close your position

Click 'Close' on your position to exit at market price, or place a limit close order. Withdraw remaining USDC margin via the Withdraw tab back to Arbitrum.

## Hyperliquid vs GMX and dYdX

Hyperliquid uses an on-chain order book on its own L1 — closest to a CEX experience among decentralised exchanges. GMX on Arbitrum uses a GLP pool model (no order book). dYdX V4 runs on Cosmos with a similar order-book architecture but lower volume than Hyperliquid in 2026.
## FAQ

**Q: Does Hyperliquid require KYC?**

No — Hyperliquid is a non-custodial on-chain exchange. You connect a wallet and trade without identity verification. Your funds remain in smart contract custody until you withdraw.

**Q: What are funding rates on Hyperliquid?**

Funding rates are periodic payments between long and short traders that keep perpetual prices aligned with spot. If funding is positive, longs pay shorts; if negative, shorts pay longs. Rates update hourly on Hyperliquid.

**Q: What is the HYPE token?**

HYPE is Hyperliquid L1's native token, used for gas, staking, and governance. Trading itself is gas-free — HYPE is not required for standard perpetual trading.

**Q: Hyperliquid vs Binance Futures?**

Hyperliquid offers similar order-book UX without custodial risk or KYC. Trade-off: lower liquidity on altcoin markets and bridge latency when depositing/withdrawing versus instant CEX transfers.

**Q: Is Hyperliquid safe?**

Hyperliquid has processed billions in daily volume since 2023. Risks include smart contract bugs, bridge risk when depositing/withdrawing, liquidation during volatility, and the March 2025 JELLY incident where validators intervened in an illiquid market.

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