This lesson will show you the steps for creating Allocation Profiles. An Allocation Profile enables the Advisor to manually specify allocation amongst a specific group of clients by predetermining the number of shares, a percentage or a ratio at which the trade will allocate.
An Allocation Profile enables the Advisor to manually specify allocation amongst a specific group of clients by predetermining the number of shares, a percentage or a ratio at which the trade will allocate.
As an example, an Allocation Profile named AP101 could be created that would allocate Clients A, B and C at 10, 30 and 60 percent, respectively.
An Allocation Profile named AP102 could be created that would allocate Clients A, B and C at 25, 35 and 40 percent, respectively.
Using the number of Shares, an Allocation Profile could be created named AP103 that would allocate 1,200 shares to Clients D, E and F in amounts of 200, 600 and 400 whenever it was selected.
- To create an Allocation Profile, find the File menu at the top of the page and click on Global Configuration. In the left pane, locate and click on Advisor Setup.
- From the top-level menu, select Profiles to open the Manage Your Profiles window.
From the buttons to the right, click on Create to open the Create Profile window. Assign this group with a unique name. Select one of the three methods. From the Account Picker below, click into the account selection field to make account numbers appear. Click the first account to include in this Profile. Type a value in the adjoining box.
If you use percentages to allocate shares, percentages allocated must equal 100.
The newly-created Allocation Profile will appear in the window, and the Method used will display on the right.
Click the x icon in the upper right corner of the window to close the configuration menu.
In the Order Entry panel, you can now see the new Profile in the dropdown Allocation menu.
Setting a Preset drives the WHO and the HOW each time the user creates an order.
To set a Default Allocation Profile, find the File menu at the top of the page and click on Global Configuration. In the left pane, locate and click on Advisor Setup.
From the top-level menu, select Presets.
There are three default selections to choose from.
When checked, the specified default setting enables the user to pick one of three default methods: Automatic Allocation, Manual Allocation and Single Account Allocation.
For Automatic Allocation, the default Group is the system-created ALL accounts.
If you have created user groups of your own, you will see them listed in the dropdown menu available for selection. Choose one.
Next, select the Method from one of the four choices.
If Percent Allocation is selected, the percentage input field will activate, and a value must be inserted.
In this demonstration, I will select All accounts and choose Available Equity as the Method. Below is a button, which when checked will preserve this as the allocation default method.
You may choose to always use the previously chosen method as your default.
At the bottom of this window, you will see additional choices for instructions in the event that an account has insufficient margin required to make the trade; the entire trade may be rejected, or the order size reduced.
And there is another preset for closing orders regarding position method and distribution.
The greatest takeaway from this lesson is that users may create a default preset for the WHO and the HOW for order entry. And you should also know how to access the presets using Global Configuration and Advisor setup from the File menu.
When you close out of Presets, look at the Order Entry panel to see your default method is present.
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