Effect of outstanding trade orders, cash and positions

Rebalancing also takes into account the outstanding trade orders in the rebalanced portfolio. Outstanding Open trade orders are replaced with new trade orders if the portfolio is rebalanced again, and the effects of outstanding trade orders of statuses Accepted, Executable, Sent to execution, In execution, Partially executed in the market, Executed in the market and Settled in the market are taken into account when creating new trade orders, but these trade orders won't be replaced.

The effects of outstanding trade orders are taken into account depending on your selections in rebalance parameters - note that the outstanding trade orders are considered differently with rebalance method Full including orders compared to the other available methods.

Applies with rebalance methods Conservative, Exchange and Full.

For available cash, rebalancing considers the effect of "buy" and "withdrawal" trade orders with negative cash effect. If you have such trade orders in your portfolio, the trade amount of the trade order is deducted from your available cash. If you have selected to include only specific account's balance in available cash through selecting either “Include only cash accounts in available cash” or “Include only the default account in available cash”, rebalancing only considers the effect of outstanding trade orders linked to the included accounts.

If you have selected to "Restrict rebalancing to accounts" and there are outstanding "buy" or "withdrawal" trade orders worth more than the current available cash, rebalancing logic allows the trade orders to push available cash to negative (and as a result, sell to cover for the negative cash).

Applies with rebalance methods Conservative, Exchange and Full.

For positions, rebalancing considers the effect of trade orders of the same type for the same security. If you should "buy" something but you already have a "buy" trade order for that security, or if you should sell but already have a sell trade order for the security, the trade amount of the outstanding order is subtracted from the suggested order.

Note that only trade orders of the same type are considered (e.g. if rebalancing suggests to "buy" and you have an outstanding "sell", the "buy" won't be adjusted to cover for the sell).

Applies with rebalance method Full including orders.

When you rebalance with the rebalance method "Full including orders", the base for the rebalance is not just the existing positions in the portfolio adjusted with certain types of orders in a certain way (as described above), but the positions in the portfolio adjusted with all outstanding trade orders. This means that rebalancing is done taking into account the effect of all outstanding trade orders both on portfolio's positions and available cash, as if the trade orders were executed with the information defined in them before rebalancing. That is, before rebalancing, the system calculates expected positions and excepted cash based on the effects of outstanding trade orders with appropriate statuses and latest available market values as described in pre-trade limits.

Full including orders rebalance method takes into account all types of trade orders on available cash, allowing you to invest money coming into the portfolio based on outstanding orders, before you even have the transactions in (whereas other methods are more conservative and only take into account orders that "reserve" cash). In addition, Full including orders rebalance method also considers a scenario when there is an outstanding trade order to "buy" a security that is that part of the model - after rebalancing there would be a trade order to sell that upcoming position.