Rebalance window

Target for rebalancing, in order of descending priority. The system uses the first target in the list if defined. Otherwise, the system the target with the next highest priority. The targets can be:

Aggregates positions and investment plan/ model portfolio contents also from the rebalanced portfolio's subportfolios. This allows you to divide holdings into subportfolios and rebalance everything at once through the main portfolio. Trade orders are created either to the main portfolio or the sub-portfolios based on which portfolio or portfolio's investment plan / model portfolio the trade order's security can be found in: for sells of existing positions, trade orders are created in the same portfolio where the position currently is, and for buys, trade orders are created in the same portfolio which has the position in the investment plan / model portfolio.

The rebalancing date. This date affects:

Restrict rebalancing to only reach the target level for portfolio accounts, without any other buys or sells. This feature has different effects depending on the rebalance method (buying with extra cash or using cash from sells) – see Rebalance methods.

With the conservative rebalancing method, securities are bought and sold only to achieve the target level of the account. If the account has excess cash, the selected securities (largest first) are bought as long as there is available cash but nothing is sold. If the account has a lack of cash, the selected securities (largest first) are sold until the account reaches the target level - nothing is bought and securities are sold only to rebalance the account to the defined level.

With the exchange method, if the account balance is below the target, it is first rebalanced with sells. After this, the excess cash from sells is used to buy the securities to be rebalanced, but securities are sold only to cover all the necessary buys. If there are Executable sell trade orders, the cash coming in from these is taken into account when selling the securities.

With full rebalance, if the account balance is below the target, it is first rebalanced with sells. After this, the excess cash from sells is used to buy the securities to be rebalanced, but securities are sold only to cover all the necessary buys.

Rebalancing approach: conservative rebalance, full rebalance, full rebalance including outstanding orders, exchange, invest cash, cover for cash, and model change (see Rebalance methods).

The minimum size for the trade orders that rebalancing should create. The size restrictions don't apply if you sell an entire position away from the portfolio (see Selling an entire position). Set the minimum difference between the portfolio position and the model as:

Accounts to use for buys if you select to buy with extra cash in the portfolio. This option allows you to keep your portfolio fully invested and exclude certain accounts (for example, accrued fee accounts) from rebalancing.

Use credit account for buys. Choose if you want to use the positive account balance and available credit for buys, and if you want to cover the negative balance. The option is shown if you selected "All accounts", "Cash and credit accounts" or "Default account only" in Use cash from accounts.

An option to calculate fees, or to estimate the effect of an upcoming fee when generating buy and sell trade orders. If a fee is calculated, the effect of the fee is taken into account when determining how many units you can buy with you available cash and how much money you get from sells. This allows you to estimate the effects of upcoming transaction fees more accurately. Fees are also saved in the Fees field for each trade order.

Option to set the minimum trade amount of the security as the minimum trade order amount. A trade order is only created if the amount is at least equal to the security minimum trade amount. If you also use "Minimum trade amount" for Filter out small trade orders based on, rebalancing first applies the filter and then checks the security minimum trade amount.

The system starts rebalancing from the largest potential trade order and works towards the smallest one. If both settings are enabled, the system does the two checks and if a trade order fails them, the following logic is used:

Example 1: The rebalancing amount is 550. Minimum trade amount is 100. Security minimum trade amount is 600. The system first checks if 550 > 100 (true), and then checks if 550 > 600 (false). No trade order is created.

Example 2: The rebalancing amount is 550. Minimum trade amount is 100. Security minimum trade amount is 300. The system first checks if 550 > 100 (true), and then checks if 550 > 300 (true). The system creates a trade order.

An option to define accounts for trade orders (Account field):

The status of trade orders.

Tags to add to trade orders. For example, you can use tags to mark trade orders with execution instructions.

Tags to add to portfolios affected by rebalancing. This allows you to for example mark the rebalanced portfolios.

Comments and notes on your rebalances, for example, references. Memos are stored in the Rebalance view, which allows you to search for conducted rebalances.