What is the settlement period for a Close Out transaction?

You may be unable to downgrade your IBKR Margin account to a Cash account due to trades which are not settled yet. To view the settlement dates for your trades, you can access the Trade Confirmation report through the Interactive Brokers (IBKR) Client Portal. This report provides detailed information about your transactions, including settlement dates. …

Clients holding short stock positions are at risk of having these positions bought-in and closed out by IBKR, oftentimes with little or no advance notice. This is a risk which is inherent to short selling and generally outside the control of the client. It is also subject to regulatory rules which dictate the timeframes by which brokers must act…

Standard settlement period for most currencies is 2 business days (Trade Date plus two business days: T+2), with some pairs such as USD.CAD settling the next business day (Trade Date plus one business days: T+1).

In order for a date to be a valid settlement date for a Forex transaction, the central banks for both currencies must be open for settlements. If either currency has a 'holiday' on the target settlement date, settlement is deferred until the next valid business day for both currencies. In addition, intervening holidays, that is a holiday between trade date and the standard 2 days later may or may not defer settlement, depending on which currencies are involved. Most currency transactions will not settle on a USD settlement holiday. This treatment is regardless of whether USD is part of the transaction directly, i.e. a EUR.JPY currency transaction will not settle on a USD settlement holiday but will be deferred to the next valid business day for all three currencies…

IBKR calculates interest on Settled cash and positions and the calculations are completed on a 1 business day lag. Clients should familiarize themselves with the relevant settlement dates for transactions as this may impact interest calculations. This is particularly important when trading Forex where one of the legs of the currency pair is subject to a settlement holiday…