Set up pledging portfolios and positions
The FA system allows users to pledge and unpledge portfolios and positions to restrict them from being traded or changed. Pledged positions are moved to a pledged portfolio. When positions are pledged or unpledged, the system creates transactions both in the pledged portfolio and the portfolio they originate from. You need to select a pledging tax type and, if you are not using standard security types, link your security types to pledging transactions.
If you are using standard security types
If you are using the standard security types (see Standard security types in FA User guide), the transaction types of pledging and unpledging transactions are already set. You still need to select a tax type for pledging and unpledging positions:
Go to Preference → Portfolios → Portfolios.
Select a tax type in the Tax type for pledging and unpledging field.
Click Save.
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The system now takes into account taxes and costs when you pledge or unpledge positions or purchase lots.
If you are not using standard security types
If you are not using the standard security types (see Standard security types in FA User guide), you need to select the transaction types and make sure they are linked to the security types you want to pledge. You also need to select a tax type for pledging or unpledging positions. Follow the steps below to set these up.
Step 1 - Select transaction and tax types for pledging and unpledging
To select the transaction types and the tax type that the system should use when creating transactions in the original and pledged portfolio, do the following in FA Back:
Go to Preference → Portfolios → Portfolios.
Fill in the fields (see Portfolios in FA Back reference):
Removing position from portfolio. Select a transaction type (for example, "REM").
Adding position to portfolio. Select a transaction type (for example, "ADD").
Tax type for pledging and unpledging. Select a tax type.
Click Save.
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The system uses the selected transaction types and tax type when creating pledging or unpledging transactions.
Step 2 - Link security types to transaction types
After selecting the transaction types, you need to make sure that the security types you want to pledge are linked to them. To link a security type to your selected transaction types, do the following:
Go to Preference → Securities → Security types and select the security type.
In Links to transaction types, select the transaction types that you chose in step 1 and move them to the right with the arrow buttons.
Click Save.
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This security type can now be used for pledging and unpledging.