Allocation Methods

Instructions

The available Group Allocation Methods and Order Ticket Allocation Methods in Advisor Portal have been listed below.

Available Equity

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 Equity 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.

Net Liquidation Value

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.

Equal

Requires you to specify an order size. This method distributes the shares to bring all accounts in the group to equal quantities by the end of the trade.

  • Example: Say you have 2 accounts you are allocating an order to, account A has 100 shares and Account B has 50 shares. if you place an order for 150 shares using equal as the allocation method, instead of allocating 75 shares to each account it will allocate 50 shares to account A and 100 shares to account B, bringing both accounts up to 150 shares post trade.

User Specified

This selection allows you to create group allocation methods that require user-defined values such as number of units, per-account ratios, per account percentages and per-account monetary amounts.

  • Percent Based: The Percentages method will split the total number of shares in the order between listed accounts based on the percentages you indicate. After you add accounts to the group, use the empty field to the right of each account to specify the per-account allocation percentage. For example, an order for 1000 shares using a user-defined method that includes four accounts at 25% each would allocate 250 shares to each listed account in the group.

  • Ratio Based: The Ratios method calculates the allocation of shares based on the ratios you enter. After you add accounts to the group, use the empty field to the right of each account the allocation ratio. For example, an order for 1000 shares using a user-defined method that includes four accounts set to a ratio of 4, 2, 1, 1 would allocate 500, 250, 125 and 125 shares to the listed accounts, respectively.

  • Contract/Shares: Indicate how many contracts/shares to allocate to each account in the group. After you add accounts to the group, use the empty field to the right of each account to specify an exact number of units to be allocated. This method calculates the order size by adding together the number of shares allocated to each account in the group.

  • Monetary Amount: The Monetary Amount method calculates the number of units to be allocated based on the monetary value assigned to each account. After you add accounts to the group, use the empty field to the right of each account to specify the monetary value that will be used to calculate unit allocation. The total order quantity is determined by adding together the specified monetary amounts and dividing by the current price.

Change Position by a Fixed Percentage

  1. Increases and decrease the number of shares held by a percentage value.

  2. Accounts with no positions will not change.

  3. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Accounts Position Equally

  1. Distributes shares ordered so all accounts will have equal positions.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 accounts, where Account A has 20 shares of NVDA and Account B has no shares, will result in Account A having an order for 40 shares and Account B for 60 shares.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Account Positions Proportionally to NLV

  1. Distributes shares ordered are distributed so each account will have positions based on the proportion of the account's NLV relative to other selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 account, where Account A has NLV of $100,000 and Account B has NLV of $25,000.

      1. If neither account has position in NVDA then this will result in Account A having a cash quantity order of $7500 and Account B of $2500.

      2. If Account A has 20 shares of NVDA then this will result in Account A having order for 55 shares (75 shares at $100 each less 20 existing shares) and Account B for 25 shares.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Account Positions Proportionally to Available Equity

  1. Distributes shares ordered based on the proportion of the account's available equity relative to other selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 account, where Account A has available equity of $100,000 and Account B has available equity of $25,000 will result in Account A having a cash quantity order of $7500 and Account B of $2500.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Equally

  1. Distributes shares ordered so shares are distributed equally across all selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 accounts, where Account A has 20 shares of NVDA and Account B has no shares.

    2. This will result in both accounts getting 50 shares each because the existing position in NVDA is not considered.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Proportional to Available Equity

  1. Distributes shares ordered based on the proportion of the account's available equity relative to other selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 account, where Account A has available equity of $100,000 and 20 shares of NVDA and Account B has available equity of $25,000 and no shares of NVDA.

      1. This will result in Account A having a cash quantity order of $7500 and Account B of $2500, existing position in NVDA is not considered.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Proportional to Existing Position

  1. Distributes shares ordered based on the existing positions of the selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 account, where Account A has 20 shares of NVDA and Account B has no shares of NVDA.

      1. This will result in Account A receiving all 100 shares of NVDA order.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Proportional to Cash Balance

  1. Distributes shares ordered based on the proportion of the account's cash balance relative to other selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 account, where Account A has cash balance of $100,000 and 20 shares of NVDA and Account B has cash balance of $25,000 and no shares of NVDA.

      1. This will result in Account A having a cash quantity order of $7500 and Account B of $2500, existing position in NVDA is not considered.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Proportional to Buying Power

  1. Distributes shares ordered based on the proportion of the account's buying power relative to other selected accounts.

    1. E.g., Order allocation of buying 100 shares of NVDA at $100 per share across 2 account, where Account A has buying power of $100,000 and 20 shares of NVDA and Account B has buying power of $25,000 and no shares of NVDA.

      1. This will result in Account A having a cash quantity order of $7500 and Account B of $2500, existing position in NVDA is not considered.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Based on a Percentage of NLV

  1. Calculates the number of shares to order based on defined percentage of the selected accounts' NLV.

    1. E.g., Order allocation of buying NVDA at $100 per share across 2 account, where Account A has NLV of $100,000 and 20 shares of NVDA and Account B has available equity of $25,000 and no shares of NVDA.

      1. This will result in Account A having a cash quantity order of $7500 and Account B of $2500, existing position in NVDA is not considered.

  2. Accounts enabled with fractional shares will get fractional orders, else it will be whole shares order (note this applies to all AOT orders).

Set Allocations Based on a Percentage of Cash Balance

  1. Distributes shares ordered based the account's percentage of cash balance relative to other selected accounts.

Set Allocations Based on a Percentage of Buying Power

  1. Distributes shares ordered based the account's percentage of buying power relative to other selected accounts.

 

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