Cash accounts are not allowed to trade Forex on a leveraged basis, but are allowed to convert one currency to another. As a Forex transaction represents the simultaneous purchase of one currency vs. the sale of another, that sale will result in a short (i.e., borrow) position unless it serves to close or convert an existing long position. Accordingly, Forex orders which would result in a short balance in any given currency, if executed, will not be accepted in a cash account.
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