Description
These are the replication methods available now:
- Exact Quantity
This method copy the exact volume between all accounts in the group.
Example: You transmit an order for 400 shares of stock ABC. If your Account Group includes four accounts, each account receives 400 shares. If your Account Group includes six accounts, each account receives 400 shares also. - Equal Quantity
Requires you to specify an order size. This method distributes shares equally between all accounts in the group.
Example: You transmit an order for 400 shares of stock ABC. If your Account Group includes four accounts, each account receives 100 shares. If your Account Group includes six accounts, each account receives 66 shares. - Net Liquidation
Requires you to specify an order size. This method distributes shares based on the net liquidation value of each account. The system calculates ratios based on the Net Liquidation value in each account and allocates shares based on these ratios.
Example: You transmit an order for 700 shares of stock XYZ. The account group includes three accounts, A, B and C with Net Liquidation values of $25,000, $50,000 and $100,000 respectively. The system calculates a ratio of 1:2:4 and allocates 100 shares to Client A, 200 shares to Client B, and 400 shares to Client C. - Available Money
Requires you to specify an order size. This method distributes shares based on the amount of available equity in each account. The system calculates ratios based on the Available Money in each account and allocates shares based on these ratios.
Example: You transmit an order for 700 shares of stock XYZ. The account group includes three accounts, A, B and C with available equity in the amounts of $25,000, $50,000 and $100,000 respectively. The system calculates a ratio of 1:2:4 and allocates 100 shares to Client A, 200 shares to Client B, and 400 shares to Client C. - Percentage Change
Do not specify an order size. Since the quantity is calculated by the system, the order size is displayed in the Quantity field after the order is acknowledged. This method increases or decreases an already existing position. Positive percents will increase a position, negative percents will decrease a position.BUY ORDER Positive Percent Negative Percent Long Position Increases position No effect Short Position No effect Decreases position SELL ORDER Positive Percent Negative Percent Long Position No effect Decreases position Short Position Increases position No effect Example 1: Assume that three of the six accounts in this group hold long positions in stock XYZ. Client A has 100 shares, Client B has 400 shares, and Client C has 200 shares. You want to increase their holdings by 50%, so you enter “50” in the percentage field. The system calculates that your order size needs to be equal to 350 shares. It then allocates 50 shares to Client A, 200 shares to Client B, and 100 shares to Client C.
Example 2: You want to close out all long positions for three of the five accounts in a group. You create a sell order and enter “-100” in the Percentage field. The system calculates 100% of each position for every account in the group that holds a position, and sells all shares to close the positions.
