This approach allows for greater flexibility, enabling the user to even initiate a new portfolio by purchasing stocks without first entering a cash deposit.
To ensure full understanding, let’s go through a practical example:
Assume a user wants to create a U.S. Equity portfolio and prefers to avoid the complexity of cash management. The user will create the portfolio by following the steps described above, without inputting an initial cash deposit.
- The user navigates to the Transactions tab and initiates a transaction to purchase 100 shares of SPY.
- To proceed:
- First, enter "SPY" in the search box (1) to locate the stock.
- Select Buy as the type of transaction (2).
- Choose the date of the transaction (3).
- Input the number of shares to be purchased, in this case, 100 (4).
- The price of the transaction will appear in the price box (5). The price displayed (in blue below the price box) will reflect the closing price for the previous trading date.
- Click on ADD TO PORTFOLIO (7)
- Since no cash was entered during the initial portfolio setup, the user should not click on the Affect Cash box (6). Leaving this box unchecked allows the transaction to proceed without checking the cash balance, preventing an overdraft scenario due to the absence of cash in the portfolio.
By following these steps, the portfolio will successfully record the SPY purchase without requiring a cash deposit. This method enables users to manage a fully invested portfolio without worrying about cash balance requirements.
The user can now review the Transactions to confirm that the Affect Cash box is not activated (1). Once verified, the user can proceed by clicking CREATE PORTFOLIO (2) to finalize the setup. This step ensures that the portfolio is established with the correct investment structure, fully invested without a cash balance, as intended.
The user can now confirm that everything is set up correctly by navigating to the Holdings page (1) and then selecting the Overview tab (2). Here, they will see that the portfolio is 100% invested in the ETF SPY with 0 cash (3) remaining in the portfolio.
This page provides a clear view of the portfolio's current investment state, confirming that the Affect Cash option was correctly left unchecked, allowing the portfolio to be fully invested without impacting cash balance.
If the user had mistakenly activated the Affect Cash box during the transaction, the cash balance would show an overdraft of $58,000 USD (1) due to insufficient initial funds.
To correct a trade, the user can navigate to the Activities page (1) and click on the pencil icon located to the left of the transaction they wish to edit (2).
The user will be redirected to the Edit Transaction page (1), where they can modify the transaction details as needed. In this example, the user will uncheck the Affect Cash box (2) to adjust the cash impact of the transaction, then click on the SAVE button (3) to confirm the changes.
Steps to Create a Manual Portfolio
Understanding Cash Management
Navigating Portfolio Pages
Detailed Holdings Pages
