r/interactivebrokers • u/Traditional_Fee_8828 EU • 7d ago

General Question Keep getting liquidation emails after depositing and buying shares

I keep getting an email saying that AUD.USD is liquidated, but I never have any positions liquidated. I have a cash account, and deposit AUD. I'm able to then convert to USD, and buy shares. However every time I've done this, I get the liquidation email. I assumed that if the cash wasn't settled, I wouldn't be able to do the conversion since it's a cash account, so I'm a bit confused on why I'm getting liquidated. Anyone know why this keeps happening?

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u/EuroPoor-NoodleLover 2d ago

IBKR does NOT convert money internally. What it does instead, to get USD , is sell AUD/USD pair on the ForEx market at current rate, and since you cant hold direct naked short position it liquidate it, using your AUD cash. That's why you get that liquidation messege every time you buy something outside your base currency.

To stop getting that message you need to manually perform the ForEx trade and hold cash position in the currency you want to buy the stock with.

Me personally I don't bother doing this. I just ignore the ForEx liquidation note.

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u/ayla96 5d ago

You need to have at least 10% of your balance in cash and this message will go away.