Cash balances can occur in client accounts for a number of reasons detailed below.
Currency Offsets: You may see a USD cash balance that acts as a buffer against negative balances in other currencies. Because the USD earns interest while the foreign positions use margin, the net impact on your portfolio is negligible.
Target Portfolio Weighting: Some portfolios maintain an intentional cash position. You can view this under the portfolio’s positions in the discover section.
Minimum Lot Sizes: Certain assets have minimum purchase requirements that necessitate a large account size to fill. In smaller accounts, these positions are rounded down, leaving the remaining capital in cash.
Negative Cash balance
Many Portfolios and Baskets on Plutus do not include a dedicated cash position and are fully allocated to investment positions. In these cases, it is common for account cash balances to hover near zero, either slightly above or slightly below. A negative cash balance is an expected outcome of market fluctuations during the execution process when fully allocated to portfolios that don't have a cash balance.
If you have a question regarding a cash position in your account please do not hesitate to reach out for additional information.