EUR/USD account and interests earned with IB

rayl, actually I'm not sure I understand.
If I keep EUR base currency and convert all my cash into USD, then buy a US stock on margin, why is the margin requirement different than if I had USD as base currency?

Can you give a numerical example?

thanks
 
Quote from MrBean:

rayl, actually I'm not sure I understand.
If I keep EUR base currency and convert all my cash into USD, then buy a US stock on margin, why is the margin requirement different than if I had USD as base currency?

Can you give a numerical example?

thanks
More...

Because once you buy stock, you no longer hold USD cash. Thus you need 2% margin for the USD position, and then whatever margin for the stock.
 
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