In order for OpenMarkets to be able to display your daily cash balance via our trading platforms, we need a daily file feed from the banks and the banks typically only provide this for professional cash account products.
Importing daily cash balances into our trading systems each day allows us to automatically 'vet' your buy orders, preventing you from "fat fingers" or buying stock with money you don't have. Having this pre-trade vetting system also supports Straight Through Processing or direct market access, promoting fast execution.
Displaying your cash balances on screen is also convenient. Throughout the day as you trade, your intraday Available Cash will be calculated based on your buys and sells. If you sell stock, your Available Cash will increase and vica versa.
A linked cash account also allows for real-time settlement on T+2, meaning debits and credits are processed immediately on settlement date.
Linked cash account benefits:
- Displays daily cash balance on screen,
- Automatic vetting prevents "fat fingers" and/or buying stock where you have insufficient funds
- Supports Straight Through Processing for faster execution
- Immediate settlement on T2
- Is often interest bearing accounts.