No, Cash Manager overdraft protection is funded by using available funds (available cash, available margin, and non-core Fidelity money market assets) from a hierarchy of Fidelity funding accounts (up to $99,999.99 per day per funding account) that you designate. It will not sell equity or bond positions or non-money market funds, and will not subject you to variations in market conditions.
Note: Available margin or non-core money market funds are used to cover overdrafts only if you select that as an option.
Fidelity funding accounts are tapped in the order you specified in your funding account hierarchy. If there are not enough funds in all of your Fidelity funding accounts to cover a debit request, no money will be transferred, and the debit will be referred to the Fidelity Margin Department for a payment decision. Debit card transactions are always rejected if there are not enough funds, because there is not enough time for the Margin Department to research other possible available funds.
Cash Manager only moves available cash once per day. Every night, Fidelity checks the cash balance in your Fidelity Cash Management Account. If that balance is below your minimum target balance, Cash Manager moves enough available cash from your funding accounts (up to $99,999.99 per day per funding account) to your Fidelity Cash Management Account to restore its cash balance to the minimum target balance. If there is not enough cash in the first funding account in your hierarchy, Cash Manager checks the second funding account in your hierarchy for available funds. This process continues until the Fidelity Cash Management Account cash balance is restored, or there are no more accounts in your funding account hierarchy. Cash Manager will always attempt to move the minimum transfer amount or the difference between the actual cash balance and the minimum target balance, whichever is larger.