When you close all positions in your Interactive Brokers (IBKR) account, the resulting cash balance becomes your Available Funds. This amount is typically withdrawable after the closing trade settles, meaning you can transfer it out of your account if you wish. Here is what you need to know:
- Cash Balance: After closing all positions, your account will consist entirely of cash.
- Available Funds: When the account holds no open positions the cash balance is considered your Available Funds as your Equity is your cash, and without open positions there are no Initial margin requirements. In most cases, the Available Funds will be equal to your account's Net Liquidation Value (NLV) at the time of closing all positions.
- Withdrawable Amount: The Available Funds are generally withdrawable after any closing trade settles, allowing you to transfer the money out of your IBKR account if desired.
- Potential Variations: It is important to note that the final Available Funds may differ slightly from the expected amount due to:
- Price changes that occur during the process of closing positions.
- Any fees associated with closing positions or pending Interest Accruals and Dividend Accruals not yet posted to the account.
- Settlement Period: Depending on the types of securities you have sold, there may be a settlement period before the funds become fully available for withdrawal. Your Trade Confirmation report includes the settlement dates on the closing transaction line.
- Account Review: It is always a good idea to review your account statements after closing all positions to confirm the final Available Funds balance.