A cash rebalance prompt occurs when your outstanding loan amount exceeds your borrowing power but you have enough cash to cover the difference. Your borrowing power is your blended LTV multiplied by your portfolio value.
If you receive a cash rebalance prompt, you will need to use Frec Cash to repay a portion of your loan or purchase securities that provide sufficient borrowing power.
During a cash rebalance prompt you will not be able to borrow additional funds. Purchasing trades that violate Reg T will be blocked and outgoing fund transfers will be blocked in order to prevent a margin call from being issued.
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