Let's say I trade with Oanda. Oanda will you give you a Margin Call if your Margin Level is 100% or less. Margin Level = Equity / Margin Used After a Margin Call you have to some time to either lighten the load or add more cash to account. If you fail to do either Oanda will liquidate the position. Now to my scenario. Let's say I'm trading EUR/USD and have $10,000 in my account and using 50:1 leverage. Let's say I want to put the whole enchilada into to short EUR. So I use $10,000 to short 10000*50/rate units of EUR. Let's say I just got into the trade and it didn't move at all. Now Margin Level = $10,000/$10,000 = 100% and I'm getting a Margin Call. Why is Oanda doing this? I haven't lost a penny yet yet they already want to close my position. Let's say the rate is 1.1117 So I shorted 449761 EUR Notional. Now Pip Value = $0.0001 * 449761 = $45. It would take $10,000/$45 = 222 pips of a movement against me to deplete my Equity to $0. All the while Oanda lost nothing until that happens. So why is Oanda screwing with me while I lost 0 out of 222 pips before they even begin to start taking losses?