The Account Trade Settings tab allows you to manage and customize the trade and cash settings for your clients’ accounts. These settings are Trading Status, Minimum Cash, Do Not Buys, and Cash Distributions.
To be used with household portfolio rebalancing, Trading Status allows you to customize how rebalancing and trading should apply to a specific account. The Unrestricted status will allow for full trading and rebalancing application. Do Not Buy or Do Not Sell will restrict buying or selling within the account. Exclude will completely exclude the account balance and positions from trading and rebalancing actions.
To be used with rebalancing, the Accounting Method allows you to model short term and long term gains that could result from rebalancing taxable accounts. There are five accounting methods that can be assigned to an account:
|LIFO||Last In, First Out|
|FIFO||First In, First Out|
|Highest||Lots with the highest price are sold first|
|Lowest||Lots with the lowest price are sold first|
|Average||The average price of all lots is calculated|
Accounting Methods are always set by your custodian and the results displayed in Oranj are directional and depend on a number of factors including but not limited to a client's tax bracket, the custodian's settings, and when a trade is executed.
The Minimum Cash setting specifies the minimum amount of cash to be left in the account. This can be set either as a percentage or a dollar amount. If both are added, Oranj will use whichever amount is greater between the percentage or dollar amount. This setting will override the firm account cash minimum setting on the firm trade settings tab within the Admin section. See the article on firm trade settings for more information.
Do Not Buy
If you would like to restrict certain securities from being bought within a specific client account, you can add that security as a Do Not Buy on the account. When trading and rebalancing, buy trades for those specific securities will not be made on the account.
Cash Distributions can be set as a one-time distribution. Start by clicking the Create New button in the top right corner of the Cash Distributions section. Enter a dollar amount in the Amount cell, or a percentage in the Percent column. Oranj will use the larger value and apply it within the rebalance. The Start Date should be today’s date and the End Date as the day you’d like the withholding to expire.
Cash distributions are only applied to a straight-through rebalance. They will be ignored if you choose to perform a Raise or Invest Cash Rebalance.
For more information on tax settings, click here.