In my year statement provided by IB, I noticed a remarkable amount for interest. So far, I was under the assumption that this would be related to me leveraging my systems.
This seems only partially true. A friend running an account in EUR at IB (like myself) is not leveraging at all and also paid a significant amount of interest. He checked for clarification and IB responded that he would trade in USD. Hence, IB is borrowing USD and keeping EUR separately. There is no automatic currency conversion.
Just sharing this in case I’m not the only stupid not knowing this…
