copied directly from Scottrade agreement document: https://www.scottrade.com/documents/alt/111_BrokAccAgreement.pdf
Scottrade can sell your securities or other assets without contacting you.
Some investors mistakenly believe that a firm must contact them for a margin call to
be valid, and that the firm cannot liquidate securities or other assets in their accounts unless the firm has contacted them first. This is not the case. Although Scottrade
usually attempts to notify customers of margin calls, it is not required to do so. Even if Scottrade has contacted a customer and provided a specific date by which the
customer can meet a margin call, it is not required to do so. Even if Scottrade has contacted a customer and provided a specific date by which the customer can meet
a margin call, Scottrade can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to the customer.
You are not entitled to choose which securities in your Margin Account are liquidated or sold to meet your margin call. Because the securities are collateral for your margin loan, Scottrade has the right to decide which security to sell in order to protect its interests.
Scottrade may increase or decrease its House Requirements at any time and is not required to provide you with advance notice.These changes in policy can take effect immediately and may result in the issuance of a margin call. Your failure to satisfy this call may cause a forced liquidation of your account.
You are not entitled to an extension of time on a margin call.
While an extension of time to meet margin requirements may be available under certain conditions, you do not have a right to the extension. Scottrade has the sole and absolute discretion to provide an extension
In case you didn’t catch how your being set up:
1. If you exceed your margin- they can liquidate your account WITH OUT INFORMING YOU
2. They can CHANGE YOUR MARGIN requirement WITHOUT TELLING YOU IN ADVANCE OR AFTER THEY’VE CHANGED IT
Any time they want to rip a customer off- they simply change their margin to an amount that puts them over the limit- and they then liquidate your account. All without informing you before or after they do it!
And by signing your agreement- you are agreeing to them doing this to you.