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Directed Trades Process
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Directed Trade Types and Rules |
Directed trades allow you to focus on individual securities while giving you the option of trading across a group of accounts outside the constraints of a rebalance. However, directed trades can also be used in conjunction with completing a rebalance on your accounts.
Directed trades are usually created because of a trigger of some kind, whether that's selling out of one security in favor of another, buying a security to take advantage of a particular opportunity, or selling out of a security as a result of some market force. Directed trades provide you with a way to create those targeted trades that can be carried out quickly.
This workflow provides the steps for how identify accounts appropriate for generate directed trades for accounts. The workflow follows these steps:
Directed trades are completed using trade and quantity types, each with their own behavior based on the options you select. Consider the following rules when creating a directed trade:
Tamarac Trading adheres to the account's round lot size unless a dollar or share amount for the security is specified. Trades that are less than one round lot are not recommended.
When directed trades are applied to an account that needs to raise cash and the net amount of the trades is not enough to cover the cash needs, the trades will not be recommended.
Trades will execute to the extent of available cash. For example, if you have three buys pending, but only have cash available for two, the first two buys will execute; the third buy will not execute because of insufficient cash.
For more information on trade types and their behavior, see Trade Type and Quantity Definitions in Directed Trades.
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Identify Accounts for Directed Trades > Find all of the accounts in which you want to complete a directed trade. This is often done through creating a saved search to target accounts that meet certain criteria. |
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Create the directed trade using the options most suited for your goals. This includes selecting the security you'll be trading, the quantity you'll be trading, and the quantity type. |
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Add Accounts and Apply Directed Trades > Associate the trade with the correct accounts. Usually this is done by associating the directed trade with a saved search you've already created, but this can also be done by picking individual accounts. |
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Review and approve directed trades on the Trade Review page or Rebalance Review page. |
For more information on specific strategies that can be used with directed trades, see Strategies Using Directed Trades and Directed Trades Versus Rebalancing.
Once you've created a directed trade, you can Reapply a Directed Trade or Change or Remove Accounts from a Directed Trade.
