His positions are now listed in USD but the negative USD balance is gone. He now has a +USD balance of 0.14c which when i tried to convert would not go through, i think its too small.
His buying power is still now listed as £25903 GBP. As per initial post did not ask for this to his recollection. When he asked for a cash account he got the following reply;
Your request to downgrade to a cash account has been reviewed and rejected due to a non-qualifying position being held in the account (USD XXXX.14 Negative Cash balance). Cash accounts cannot sell stock short or hold negative cash balances in any currency.
Please review your portfolio and close this position if you wish to continue with the downgrade process. Additionally, please review the information below as a reminder of basic Cash account limitations.
* Cannot borrow to buy stock, write uncovered options, sell stock short or maintaining certain option spreads;
* Cannot transact with unsettled funds;
* Cannot maintain short balance in any currency. The account will be required to convert funds prior to transacting in products denominated in a currency you do not hold.
* Subject to forced liquidation if fees (e.g., monthly activity) without sufficient cash available to satisfy.
If you have any further questions, please feel free to respond to this ticket so that I may further assist
My question is should he still go ahead and ask for a cash account. He does not intend to buy any further stocks on this platform. Would it be best to leave things as they are or go ahead with changing to a cash account. He may sell the stocks in around 5 years and just close the account. Will he be able to do this without having a margin - I assume so ? Will it cost him much to keep the £25k buying power ? When i try to run a statement on costs it wouldnt open for him. Also even though his cash balance is around £1k, his available funds and excess liquidity are listed as around £6 k - why is this ? Many thanks for earlier advice on this matter !
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