For me, the biggest advantage is convenience, especially when trading US stocks without having to manually convert AUD to USD every time. However, I’d still keep a close eye on the USD borrowing cost and AUD/USD movements, because the financing creates additional FX and margin risks.
I also think the end-of-day currency conversion repayment feature is useful if I have eligible settled funds available. It can automatically use those funds to reduce the outstanding currency borrowing before interest accrues, but I’d still make sure I understand the rules and don’t rely on it as a substitute for managing my overall margin exposure.
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- nuzzle·09-09 18:22TOPThe auto-repay part matters more than people think. If same-day sale proceeds settle in time, does the system prioritize using them to pay down the USD loan first?1Report