As an Interactive Brokers (IBKR) client with a Cash type account, you may occasionally receive a liquidation notification for a trade with Code "AFx" for IB Auto FX Conversion even if you do not trade on margin. This can be confusing, but there is a specific scenario where this can occur:
- Currency Conversion for Withdrawals:
- If you request a withdrawal in a currency that you do not have sufficient balance in, our system will automatically initiate a currency conversion.
- The system will convert funds from another currency in your account to fulfill the withdrawal request.
- Automated Process:
- This IBKR Auto FX (AFx) currency conversion process is entirely automated.
- It does not involve selling any of your stocks or other assets.
- Notification Purpose:
- The AFx liquidation notification you receive is to inform you about this automated currency conversion process.
- It is important to note that this is not a traditional margin call or forced liquidation of your positions.
- No Impact on Investments:
- Your investment positions remain unaffected by this process.
- The conversion only involves the cash balances in different currencies within your account.
Understanding this process can help alleviate concerns when you see a liquidation notification, especially if you know you have not engaged in margin trading.