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Allow Trade Using Security Substitutes

When creating or editing a directed trade, Allow trade using security substitutes determines whether or not the directed trade will generate a trade recommendation using any security substitutes you've set up for the traded security.

When placing a directed trade for a security with security restrictions, Tamarac Trading can perform the trade action using substitute securities if substitutes are available for the security and you have selected Allow trade using security substitutes.

Best Practices

The following best practices provide guidance around security substitutes:

• Use security substitutes when selling, but not while buying securities through directed trades.

• Security substitutes can be used for similar mutual fund share classes where either the mutual fund in the model or a substitute fund would achieve similar goals.

• This option is useful for trading in accounts with restricted securities; it allows you to complete a directed trade in multiple accounts, even accounts with restrictions.

Learn More

For more information on creating directed trades, see Directed Trades Process. For more information on directed trades strategies, see Strategies Using Directed Trades and Directed Trades Versus Rebalancing.

For more information on quantity and trade types and how they'll affect directed trades, see Trade Type and Quantity Definitions in Directed Trades.

For more information on security substitutes, see Security Substitutes.