Initial position
Safety orders
Price ($)Extra collateral ($)
How safety orders shift your liquidation price
When you add a safety order at a lower price, your weighted average entry falls — which also pushes the liquidation price further down (for longs). The improvement is real but limited: each additional order shifts the average less than the previous one, because the existing position weight grows. At high leverage even a 5% shift in average entry only moves the liq price by a similar 5%.
The hidden risk: each safety order increases your total position size and total capital at risk. If price keeps falling past all your orders, the total loss is now much larger. Always plan how many orders you can afford before entering.