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Can I use cash in one currency (e.g. AUD) as collateral to buy securities in another currency (e.g. USD) by margin? Do I need to pay interest in this situation?

Certainly, you can do so; however, it's important to be aware that this will expose you to foreign exchange risk.


Interest charges will apply to the margin loan you borrow, even though your collateral might earn some interest.


To minimize or possibly eliminate the interest charges, you might want to consider converting your currency.

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