Executive Summary (TL;DR) The Raise and Spend Cash Tool helps create buy or sell trades to invest contributions, generate cash for distributions, and manage cash levels across accounts, trade groups, and portfolios. This article explains how to access and use the tool, select accounts and trading methods, configure cash options, and apply key preferences that influence trade generation.

 

 

What Does This Article Help Solve?

Common Real-Life Questions Users Ask About the Raise and Spend Cash Tool?

"How do I use the Raise Cash Tool to generate cash for a client distribution?"

"How do I invest an unexpected client contribution using the Spend Cash Tool?"

"Which Raise Cash or Spend Cash method should I choose for my trading scenario?"

"How do I protect my account's cash target when spending cash?"

 

 

Article Quick Links

Why Use the Raise and Spend Cash Tool?

What Is the Raise and Spend Cash Tool?

How to Raise or Spend Cash Using the Raise/Spend Cash Tool?

Accessing the Trade Tool

Selecting and Filtering Accounts Tab

Create Trades Tab

Raise Cash Method

Spend Cash Method

Raise Cash/Spend Cash Options Tab

Sleeves Specific Raise/Spend Cash Settings

Raise/Spend Cash Preferences

 

 

Why Use the Raise and Spend Cash Tool?

• Make unscheduled contributions and distributions seamlessly by creating trades to invest incoming cash or raise funds for client needs.
  
  
• Protect your cash targets across accounts and portfolios by applying cash protection settings and trade methods aligned with account and portfolio goals.
  
  
• Customize trade generation for different scenarios using flexible raise and spend methods, cash options, and preference settings.
  
  
• Support efficient portfolio management by processing cash needs across individual accounts, account trade groups, Excel imports, and sleeved portfolios.

 

 

What Is the Raise and Spend Cash Tool?

The Raise and Spend Cash Tool allows you to create buy or sell trades in a specific account based on the amount entered into the tool. Run the Raise/Spend Cash tools for an Account, Account Trade Group, or Excel Import. Access it from the Portfolios grid, but bring each account in the Portfolio into the tool.

Examples

• A client made a contribution of $10,000 and that cash needs to be distributed in the account. Use the spend cash tool to distribute the client's cash throughout the account. Choosing a spend cash method (Defined Below) determines how it's spent throughout.
  
  
• A client needs to generate a certain amount of cash to make a purchase and you need to sell some of the positions to generate the appropriate amount of cash. Use the Raise Cash Tool and select the appropriate Raise Cash Method (Defined Below) to raise the cash for the client.

 

 

How to Raise or Spend Cash Using the Raise/Spend Cash Tool?

 Accessing the Trade Tool

• Navigate to Orion Trading's Accounts tab
  
  
• Select all accounts
  
  
• Highlight the account(s)
  
  
• Click the Actions Menu
  
  
• Hover over Trade Tools
  
  
• Select Raise cash or Spend Cash
  
  

Please Note: Use the contribution dashboard on the Portfolio's tab to see which clients received contributions that day. The "contribution amount" column displays how much cash was added.
 

 

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Selecting and Filtering Accounts Tab

The Selection and Filter view presents two panels. The left panel is the type of entity the cash needs to be raised or invested. The corresponding types are:
 

• Account - Enter the account number, name, or ID to add
  
  
• Account Trade Group - Accounts that are traded in a similar fashion are put into a group using queries in Orion Trading
  
  
• Excel Import - The excel import has two options for raise/spend cash. One utilizes Account ID and the other utilizes Account Number. Use these two columns:
  
  

• • "Account ID" OR "Account Number"	Amount
    123 (Account ID)	1000
    123456789 (Account Number)	1500.50

  • The "Amount" in the second column contains the dollar amount that should be raised or spent. Do not use symbols such as $, %, -.

 

• Import by Security (Sleeve Raise Cash Only) - Select the securities that are bought or sold via import. 
  
  

  • Account Number	Ticker	Amount	Shares
    123456789	AAPL		2
    123456789	F	250.50

  • Use this import to sell specific securities in a sleeved account and automatically journal cash to the distribution sleeve. You only need to fill out 3 columns. The Account Number, Ticker, and the Amount or Shares columns.

 

• After selecting the accounts, add the amount of cash that needs to be raised or spent.
  
  
• Click Add to add the entity to the panel to the right or click the red "x" on the right side of the grid to remove an entity.
• Use "0" in the amount column to tell the system to spend all excess cash in individual sleeves.
  
  
• Once you add the entities to the table, check to make sure analytics are good. After ensuring all of the analytics have been run, click "Next" to proceed to the "Create Trades" screen.

 

Create Trades Tab

As shown below, the Create Trades view offers the opportunity to select the method to invest the cash.

 

The Raise Cash/Spend Cash Methods determine how Orion Trading creates trades to raise or spend cash. Review a short description for each method below. For more information on each step in the Raise or Spend Cash Tool, download the Raise and Spend Cash Logic Decisions spreadsheet for a complete list. Use the sheet tabs at the bottom to toggle between methods. 

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Raise Cash Method

• Pro-Rata: Distributes the cash and creates a sell-trade of each targeted security. When every targeted position is not owned, the full amount is not raised.
  
  
• Sell Rebalance: Sells the most out of tolerance position back to target and then trades the second most out of tolerance position to target. The pattern continues until the full amount is raised.
  
  
• Sell Rebalance with Oversell: Sells the most out of tolerance position back to lower trade tolerance. Then, it trades the second most out of tolerance position to lower trade tolerance. The pattern continues until the full amount is raised. This option is the best practice for household level trading as it ensures cash is raised in accounts that may not hold overweight positions. Please note, the "allow trade past target to tolerance" below.
  
  
• Sell Rebalance with Emphasis: The system runs a sell rebalance on a portion of the model. For example, if you only raise cash from equities, this sells the most out of tolerance position back to target. Then, trades the second most out of tolerance position to target. The pattern continues until the full amount is raised.
  
  
• Sell Full Rebalance: Runs a full rebalance and raises the amount needed.
  
  
  • When using Sleeves: Raises cash and runs individual rebalances on each sleeve. This does not run a portfolio level rebalance (out of tolerance sleeves are not brought into tolerance).
    
    
• Sell full rebalance (Portfolio): Sleeves only - Raises cash and runs a full portfolio rebalance. This brings both sleeves and securities into tolerance.
  
  
• Individual securities: Sleeves only - Allows the user to pick & choose the individual securities that you want to sell.

Please Note: When cash is currently overweight, the current excess cash counts towards the amount to be raised. It is best practice to enter the distribution amount the client needs. That way, you both raise the cash and are intolerance for cash post-trade.

• Example: account targets $10,000 and currently has $12,000. If you enter $5,000 to be raised, the system raises $3,000. 

 

Spend Cash Method

• Pro-Rata: Distributes the cash and creates a buy-trade of each targeted security.
  
  
• Buy Rebalance: Buys the most out of tolerance position back to target. Then, it trades the second most out of tolerance position to target. The pattern continues until the full amount is spent.
  
  
• Buy Rebalance with Overbuy: Buys the most out of tolerance position back to upper trade tolerance. Then, it trades the second most out of tolerance position to upper trade tolerance. The pattern continues until the full amount is spent. This option is the best practice for household level trading because it ensures cash is spent in accounts that may not hold underweight positions. Please note, the "allow trade past target to tolerance" below.
  
  
• Buy Rebalance with Emphasis: The system runs a buy rebalance on a portion of the model. For example, if you only spend cash from equities, this buys the most out of tolerance position back to target. Then, trades the second most out of tolerance position to target. The pattern continues until the full amount is spent.
  
  
• Buy Full Rebalance: Runs a full rebalance and spends the amount needed.
  
  
  • When using Sleeves: Spends cash and runs individual rebalances on each sleeve. This does not run a portfolio level rebalance (out of tolerance sleeves are not brought into tolerance).

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 Raise Cash/Spend Cash Options Tab

This view allows you to choose whether to Raise The Full Amount. Checking Set Aside Cash considers set aside cash and does not overspend the account. Then, click "Calculate" to generate the trade(s) desired and transition the view to the Orders Grid to review trades before processing.

• Ignore All Preference Restrictions - This preference does not change how much needs to be raised. It turns off the wash sale violation check, short term gains violation check, minimum transaction amounts, and transaction cost limits.
  
  
  • Use Default - this uses the settings for each account from the preferences
    
    
  • Yes = All accounts are marked to raise full amount.
    
    
  • No = All accounts are NOT marked to raise full amount.
    
    
• Spend Cash - Cash Protection (Spend Cash only) - Determines how much cash is protected in the Spend Cash Tool.
  
  
  • Use Default - Uses the selection in the administrator preferences for this preference.
    
    
  • Allow Cash to Go Negative - Cash is not protected and is a true spend full amount. The amount entered is spent even when cash goes negative, and you request to spend more than the account's total value.
    
    
  • Allow Cash to Go to $0 - Spends the amount requested but only to $0 cash. In this case, cash is not protected.
    
    
  • Protect Only Excluded Cash - Protects excluded cash but not model or rebalance cash. This reduces the portfolio's worth by the excluded cash and then spends the amount requested, even if that means spending past model/rebalance cash target.
    
    
  • Protect Full Account Target - Protects the account's full cash target regardless of what spend amount is entered. It won't be able to spend past the account's cash target, including model cash, rebalance cash, and excluded cash. 
    
    

• Add New Set Aside Cash On Account(s) For the Amount To Be Raised (Raise Cash only)
  
  
  • When checked, this adds a new set aside cash amount on each account for the amount to be raised.
    
    
• Journal All Excess Cash Needed (Sleeves only) – This preference journals all excess cash from every sleeve before creating any trades. Journals move sleeve by sleeve going from the highest distribution % and then the largest amount of excess cash. After moving all excess cash, when the raise cash amount is still not met, the system creates trades based on the raise cash method.
  
  
• Liquidate Unassigned Securities (Raise Cash Only) - Liquidates securities that are not assigned to the model and not excluded when checked.
  
  
• Liquidate Equivalent Securities (Raise Cash Only) - Liquidate all specific equivalents in portfolios to get out of non-primary securities en masse. That way, you only have targeted securities in your portfolios moving forward. Equivalents marked as do not sell are NOT included in the liquidation.
  
  
• Liquidate Group Equivalent Securities (Raise Cash Only) - Liquidate all group equivalents in portfolios to get out of non-primary securities en masse. That way, you only have targeted securities in your portfolios moving forward. Equivalents marked as do not sell are NOT included in the liquidation.
  
  
• Trade Tolerance % - Update the trade tolerance one-off for this instance or leave blank to use the default trade tolerance %. Review How to Set Tolerance Bands in Orion Trading for more information on this preference.
  
  
• Maximum Capital Gains Allowed (Raise Cash Only) - There are four options for limiting your maximum capital gains incurred on a portfolio:
  
  
  • Default - Uses the preference set at the firm, team, or portfolio level in the administrator preferences. Review the Orion Trading Platform (Eclipse) – General Preferences article to learn more about administrator preferences.
    
    
  • No Limit - Creates trades that violate the portfolio max gain amount but includes a warning message on the order that lets you know that the trade exceeds your gain limit.
    
    
  • Use Portfolio Max Gain Amount - Prohibits any trade from exceeding that amount set in the portfolio level administrator preferences and discards any trade that does.
    
    
  • Set One Time Max Gain Amount - Used for one-off max gain amounts (pictured below). Selecting this allows you to set whether to include the current realized YTD gain or loss amount using the checkbox. Then, select your One Time Max Gain Amount as either a dollar amount or %.
• Rebalance Target
  • Target - Include Tolerance Bands - The Rebalancer uses tolerance bands to determine what to trade. Any time a holding is outside the tolerance bands, the Rebalancer trades to target.
    
    
  • Target - Ignore Tolerance Bands - The Rebalancer ignores all tolerance bands set on the model as if the tolerance bands are set at 0%. Any holding that is not on target attempts to make a trade to get to target. Essentially, this resets your portfolio directly to target.
    
    
  • Trade Tolerance - Trades to your upper or lower trade target instead of the target. See above for Trade Tolerance definition. Essentially, the target amount is ignored and overweight securities use the upper trade tolerance as a target, while underweight securities use the lower trade tolerance as a target.
    
    
  • Model Tolerance - Trades to your upper or lower tolerance bands instead of the target. Essentially, the target amount is ignored, and overweight securities use the upper tolerance band as a target, while underweight securities use the lower tolerance band as a target.
    
    
• Raise Cash - Include Excess Cash (Raise Cash Only) – Determines how excess cash is handled when using the Raise Cash Tool.
  • No Excess Cash – Raises only the amount specified and does not use any excess cash in the account.
    
    
  • All Excess Cash – Uses all excess cash above the target toward the requested raise amount. This applies to cash that is overweight, whether it is within tolerance or out of tolerance.
    
    
  • Excess Cash Above Tolerance – Uses excess cash only when the cash position is both overweight and out of tolerance. When these conditions are met, the system uses all excess cash above the target toward the requested raise amount.

 

 

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 Sleeves Specific Raise/Spend Cash Settings

Review How to Raise And Spend Cash in Sleeves for more information on running the tools with sleeved portfolios. 

Raise/Spend Cash Preferences

The set of Preferences that Spend Cash consults and depends on to generate trades includes:

• Allow Short Term Gains – determines whether securities may be sold before aging to long term taxable gain status (i.e. before one year).
  
  
• Allow Wash Sales – determines whether a security may be bought within 30 days before or after a sell transaction.
  
  
• Disallow Sells Within X Number of Days Of Going From STG To LTG – maximizes tax efficiency by suspending trading in securities based on the stated number of days before a securities tax lot's transition from short term to long term capital gains status.
  
  
• Tax Lot Depletion Method – establishes the order to dispose tax lots of a security.
  
  
• Location Optimization – establishes rules for where certain securities or security types are held in a portfolio based on the tax characterization (Taxable, Tam-Exempt and Tax Deferred) of the accounts comprising the portfolio.
  
  
• Share Rounding For Equities – determines the how to round when rebalance logic results create fractional shares for equity trade orders.
  
  
• Dollar Rounding For Mutual Funds – determines the how to round when rebalance logic results create fractional shares for mutual fund trade orders.
  
  
• Trade Minimums/Maximums – sets limits in either real dollar or percent of Portfolio terms for various security types' maximum and minimum trade size.
  
  
• Spend Cash Default Method – establishes from among a set of possible selections the method that cash is spent for any trading scenario that involves the use of available cash to purchase
  
  
• Raise/Spend Cash – Always Full Amount – This option turns off wash sale avoidance, short term gain avoidance, and minimum/maximum transaction amounts. This helps ensure that cash is spent/raised.
  
  
• Raise Cash - Include Excess Cash – Determines how excess cash is handled when using the Raise Cash Tool.
  
  
  • No Excess Cash – Raises only the amount specified and does not use any excess cash in the account.
    
    
  • All Excess Cash – Uses all excess cash above the target toward the requested raise amount, including cash that is overweight but within tolerance or out of tolerance.
    
    
  • Excess Cash Above Tolerance – Uses excess cash only when the cash position is both overweight and out of tolerance. When these conditions are met, the system uses all excess cash above the target toward the requested raise amount.
    
    
• Cash Need Tax Sensitivity Settings – establishes limits on cash generation based on tax consequences of trades to generate cash.
  
  
• Allow buys/sells past target to tolerance - This allows the system to sell/buy intolerance positions to spend or raise the full amount. This is best practice for household level rebalancing because it ensures cash is raised even when an account does not hold out of tolerance positions. This only applies to the sell/buy rebalance oversell option.
  
  
• Spend Cash - Cash Protection (Spend Cash only) - Determines how much cash is protected in the Spend Cash Tool.
  
  
  • Use Default - Uses the selection in the administrator preferences for this preference.
    
    
  • Allow Cash to Go Negative - Cash is not protected and is a true spend full amount. The amount entered is spent even when cash goes negative and you request to spend more than the account's total value.
    
    
  • Allow Cash to Go to $0 - Spends the amount requested but only to $0 cash. In this case, cash is not protected.
    
    
  • Protect Only Excluded Cash - Protects excluded cash but not model or rebalance cash. This reduces the portfolio's worth by the excluded cash and then spends the amount requested, even if that means spending past model/rebalance cash target.
    
    
  • Protect Full Account Target - Protects the account's full cash target regardless of what spend amount is entered. It won't be able to spend past the account's cash target, including model cash, rebalance cash, and excluded cash.