EXANTE's auto conversion feature provides a convenient way to manage your account's currency balances and avoid holding negative cash positions. This article explains how auto conversion works, its logic, and how to configure it in your Client's Area.
What is Auto Conversion?
Auto conversion automatically exchanges funds between currencies in your account to cover transaction costs or prevent negative balances. This eliminates the need for manual currency conversions and helps streamline your trading experience.
How Auto Conversion Works
Trigger: Auto conversion is triggered when you attempt a transaction that would result in a negative balance in a particular currency.
Currency Selection: The system automatically selects the base currency you've designated in your auto-conversion settings.
Conversion: The required amount of your base currency is converted into the currency needed to cover the transaction cost.
Execution: The transaction proceeds and your account is debited in the converted currency.
Currency Conversion Logic
The conversion is executed at the current market exchange rate between your base currency and the required currency.
Setting Up Auto Conversion
Log in to your Client's Area: Access your EXANTE account through the Client's Area.
Navigate to Settings: Go to "Settings" → "Account Settings".
Select your Account: Choose the trading account for which you want to configure auto conversion.
Enable Auto Conversion: Toggle the "Auto Conversion" option to "On".
Choose Base Currency: Select the currency you want to use as your primary conversion source. This should be a currency you typically hold a positive balance in.
Client’s area → Account Settings
Example:
Avoiding Negative Balance
Account Balances: 1000 USD, 0 EUR
Transaction: Buy 100 shares of a European stock priced at 15 EUR per share (total cost: 1500 EUR).
Auto Conversion: With auto conversion enabled and USD set as the base currency, the system automatically converts the required amount of USD to EUR to cover the 1500 EUR transaction cost.
Important Notes:
Existing Negative Balances: Auto conversion does not automatically convert existing negative balances. You'll need to manually convert currencies to address those.
Transaction Timing: Auto conversion occurs at the time of the transaction, using the prevailing market exchange rate.
The autoconversion to Turkish Lira currency (TRY) is not supported.
AED (United Arab Emirates Dirham) is automatically converted to USD by default. However, if you've set the autoconversion feature to a different currency, it will convert to your preferred currency instead.