A cash account maintaining only long cash and securities remains susceptible to liquidation if the cash balance falls into deficit. Were a cash deficit to occur, this account type does not afford IBKR the opportunity to issue a loan using the securities as collateral. The circumstances by which a cash type account might incur a cash deficit include the following:
- Assessment of a market data subscription fee;
- Credit interest from any long cash balances which incur credit interest;
- Taxes, VAT charges, or other fees;
- Exercise of a long call option resulting in the delivery of stock without sufficient cash to pay in full; and
- Exercise of a long put option resulting in the delivery of a short stock position which cannot be offset by an existing long position.
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