USD is my base currency but I own some stocks on the HK exchange, so I have an HK cash position in my account which is positive. Currently my TOTAL CASH is positive (because of the HK cash position) but my USD cash position negative. Can someone clarify for me, so long as my total cash is positive does that mean I can trade and invest without borrowing on margin from IB? or am I on margin any time my USD balance is negative, since USD is my base currency? Thank you so much for helping me wrap my head around this!
no any negative currency balance will be assessed with interest charge, better to have both currencies in the green balance.
thanks! I have one more question, if you can help me. to avoid any IB interest fees on my HK position, is it sufficient for me to hold cash equal to my cost basis? I notice that the amount of HK cash I have right now exceeds the cost basis of my stock, so I'm wondering if I could solve the negative USD balance by converting some HKD to USD?
The so-called "base currency" is only used to calculate your monthly reports. It has no impact on any of your cash positions in your account. Any cash position that is negative will incur debit interest. IB publishes an overview of the interest rate for each currency on their website. For positive cash positions will you receive credit interest. These interests will betaken from, or added to, your account at the end of the month. See your monthly statement for further details.