In funds, Investors’ capital investment is pooled into one fund account created by the Portfolio Manager (PM). The PM trades from the fund account with the invested capital, and orders are allocated to each investment using the investment equity share.
Investment equity share
Investment equity share determines how orders are allocated to exact investments in a fund and is calculated with this formula:
Equity Share = Investment equity / Sum of all investments equity in a fund
Investment equity refers to the amount an Investor has in their investment account, plus or minus any profit or loss from open orders.
Minimum order allocation
The minimum order volume for the PM is 0.01 lots, while the minimum lot size that can be allocated to an investment is 0.0001. This ensures that Investors receive orders even when the PM opens minimum order volumes.
Order allocation calculator
Portfolio Managers are provided with an order allocation calculator on the fund page in the Portfolio management area in the Personal Area (PA) to help them allocate orders among their Investors.
Scenarios
Order allocation can vary depending on the number of investments, investors, investment amount by Investors, and the orders made by the PM. This can include:
- Different shares
A PM starts a fund, does not deposit into the fund, and invites Investors.
- Investor 1 invests 1000 USD.
- Investor 2 invests 1500 USD.
This equals to 2 500 USD in the fund account. The PM opens a 2 lot order.
| Investment | Equity share | Order allocation | |
| Investor 1 | 1000 USD |
(1000/2500)% = 40% |
(1000/2500) × 2 lot = 0.8 lot order |
| Investor 2 | 1500 USD |
(1500/2500)% = 60% |
(1500/2500) × 2 lot = 1.2 lot order |
- Different shares (continued)
A PM starts a fund, does not deposit into the fund, and invites Investors.
- Investor 1 invests 2000 USD.
- Investor 2 invests 1500 USD.
- Investor 3 invests 1010 USD.
This equals 4 510 USD in the fund account. The PM opens a 2 lot order.
| Investment | Equity share | Order allocation | |
| Investor 1 | 2000 USD |
(2000/4510)% = 44.3% |
(2000/4510) × 2 lot = 0.8869 lot order |
| Investor 2 | 1500 USD |
(1500/4510)% = 33.2% |
(1500/4510) × 2 lot = 0.6651 lot order |
| Investor 3 | 1010 USD |
(1010/4510)% = 22.3% |
(1010/4510) × 2 lot = 0.4478 lot order |
Next, we allocate the remaining master order by prioritizing larger investments based on their equity share.
- For Investor 1’s order (biggest investment): (2000/4510) x 0.0002 lot = 0.000088691796 = 0.0001 lot
- The last 0.0001 lot will be allocated to Investor 2 (the next biggest investment).
Final allocation:
| Investor 1 | Investor 2 | Investor 3 |
| 0.8869 lot + 0.0001 lot = 0.8870 order | 0.6651 lot + 0.0001 lot = 0.6652 order | 0.4478 lot order |
- Equal shares
A PM starts a fund, does not deposit into the fund, and invites Investors. Three investors invest 1000 USD each. This equals 3000 USD in the fund account. The PM opens a 1 lot order.
The equity share for each investor is equal: (1000/3000)% = 33.33%
- Investor 1 is allocated 0.3333 lots.
- Investor 2 is allocated 0.3333 lots.
- Investor 3 is allocated 0.3334 lots.
Even if all investments are equal, 0.0001 lot is left. This 0.0001 lot will be allocated to the latest investment, meaning Investor 3 will open with a 0.3334 lot.
- Small shares
The PM opens a fund and has two investors.
- Investor 1 invests USD 14860.
- Investor 2 invests USD 140.
The PM opens a 0.01 lot order.
- Investor 1 is allocated 0.01 lot.
- Investor 2 is not allocated any order.
In this case, the PM should consider opening orders of more than 0.02 lots to accommodate both investors.
Important: If the resulting volume is lower than the minimum lot size of 0.01 lot, the Investor will not receive the order.
- Partial closing
Partial closing of orders can happen if an Investor manually closes or, through stopout, automatically closes an investment.
Important: When a fund is stopped out, all its active investments are closed, and the fund is archived.
PM opens a 1 lot order.
- Investor 1 invests 4000 USD.
- Investor 2 invests 6000 USD.
| Investment | Equity share | Order allocation | |
| Investor 1 | 4000 USD |
(4000/10000)% = 40% |
(4000/10000) × 1 lot = 0.4 lot order |
| Investor 2 | 6000 USD |
(6000/10000)% = 60% |
(6000/10000) × 1 lot = 0.6 lot order |
If Investor 1 closes the investment.
- Order volume is closed partially = 0.4 lots.
- Remaining order volume = 1 - 0.4 = 0.6 lots.
If Investor 2 closes the investment.
- Order volume closed = 0.6 lots.
- Remaining order volume = 0.6 - 0.6 = 0 lots.