HI

I have a brokerage account which is on portfolio margin. As part of my account agreement, the overall portfolio has to be relatively neutral to the market - (ie - a short of 1000 shares of SPY at $100 would go towards $100,000 as a short,etc) Everyday, my portfolio is looked at by an algorithm, which compares my long and short positions, which have always been well within the range of neutral. Recently however, I purchased a significant amount of a security which i deemed to be a long security but for which the algorithm deemed a short security, which triggered a risk margin call. When i notified the broker that i thought the calculation was wrong, they disagreed and said they were counting it as a short security and if i didnt liquidate that or another short security, they would force liquidation upon me. Importantly, this was NOT a reg-T call, this was only an internal risk call. Also, the broker has NO DOCUMENTATION to show how they determine what is long or short, thus, it is the judgement of one person. Street convention at large brokers show this security (albeit a bit esoteric) to be a LONG SECURITY but the broker has stuck to their guns and forced liquidation

Since the liquidation, the value of the security has increased by almost 50% - do i have the right to sue the broker for the damages for the liquidation, or can they make up whatever rules they wish if they are the ones extending the margin??

Optional Information:
State/Country relating to question: New York