A margin call in the investment world is when you had a loan taken out and used the shares as collateral. The value of the shares fell, so now the lender wants their loan paid back pronto because they're afraid of losing money when the collateral becomes closer to useless.
Yup I know that part but. I gave him money then over x amount of years it grew and from time to time I ask for some. I never really paid much attention to how he sold them just that I got what I asked for. This time I saw the margin sale and so I went back to look at a few others and they all said the same thing. So this got me wondering is there a different type of margin sale.
Unless you agreed to allow your portfolio manager to use your assets as collateral, this should not occur in your account unless you do the trades yourself. He could be doing naked puts (fool.com). This is a dangerous strategy. You need to fully understand what you're doing. Believe me, whoever is doing this on your behalf has no clue. They only know it's a bet. They're using your assets to cover their bets. I suggest you start reading your contracts to see if you authorized this kind of transaction. Then run for the exits. Tell your fiduciary (your broker) that you need all of your money now. In other words take your money out of this account now! This sounds suspiciously like Bernie Madoff. This crook used his client's money in a ponzi scheme for decades.
I don't believe he's a Bernie. He's been managing money for my extended family for a long time and he's known my uncle for 50 years and been his money guy for 30. The only time I see the TRADE TYPE: MARGIN is when I ask him to sell some stock for me, not at random times.
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