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Duration: 4:43

Instructor:

Contributor: Interactive Brokers

Level: Beginner

This lesson will explore using the TWS Rebalance Portfolio Tool whereby advisors can automatically rebalance all accounts, a single subaccount, or a user-defined Account Group or Model.

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Study Notes:

Advisors can elect to have Trader Workstation automatically rebalance ALL accounts, a single subaccount, or a user-defined Account Group using the Rebalance Portfolio tool.

To access the Rebalance Portfolio tool using Mosaic:

Click the blue New Window button, select Portfolio Tools > Rebalance Portfolio.

To access using the TWS Classic workspace:

Open the Rebalance window by clicking the Rebalance icon on the trading toolbar.

If you do not see the toolbar icons at the top of the page, access Global Configuration using the wrench icon or from the Edit menu.  Click Display and then Toolbar.

Uncheck Simplify menu and toolbar, select Show toolbar, view the icons to display and then click Apply and OK at the bottom of the panel.

You can also add more toolbar icons by simply selecting the arrowhead on the far right.

TWS opens and closes positions to rebalance the selected accounts’ portfolio based on the new target percentages you enter. You can add contracts and create orders just as you would from the main trading screen.

In the Select Account dropdown, you can select: All to rebalance All accounts; a specific sub-account, or an account group.

The Rebalance window shows three columns that are different from those on your trading screen:

Deliverable Value – For stocks, this is the value of the stock.  For options and futures, it is the value of the underlying asset.

Actual % – This is the deliverable value as a percent of Net Liquidation.

Target % – Enter the new desired deliverable value as a percentage of Net Liquidation.

Enter Target Percentages

In the Target % field, enter the new percent of the Net Liquidation Value that you want the position to have.

Click the Create Rebalance Orders button to instruct the application to automatically create the orders to achieve the percent change.

Notice how TWS automatically calculates the quantities in the order panel.

Adjust the order parameters as you would on the trading page and transmit the order.

Use the Transmit All button to send all orders or click “Transmit” on an order line to transmit a single order.

If you select “ALL” accounts or an account group, enter target percentages. The target percentage for the instrument will be applied to all of your sub accounts’ portfolios.

Create rebalance orders and you will see “Custom” in the allocation column.

Hover over “Custom” to view the share break down per account.

To Open a new position in the Rebalance tool:

Simply enter an underlying symbol into a blank row on the Rebalance screen as you would on the main trading window.

Enter a target percentage and then click the Create Rebalance Orders button, followed by transmit.

There are several buttons in the Rebalance Portfolio tool to streamline the process:

In the Financial Instruments panel:

Set Targets from Current – this resets the Target % based on the actual percentage values.

Clear Targets – this clears all values in the Target % column and all saved targets as well.

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

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