Author Topic: how do you get a proper summary on your account, with folio cash tied up?  (Read 3218 times)

mikedev10

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my account is clearly missing money in the summary because of 1. cash in folio tied up in pending purchases 2. cash in folio tied up for canceled, refund processing orders.

without making trades for no days and waiting for all these to settle, is there a way to actually accurately account for how much my account is worth?  i'd like to take a month end snapshot to calculate IRR but how can i do this if i can never get an accurate number?

it seems that the best i can hope for is that
1. at any given point i record a number, the same amount of money is held up
2. at some point if i invest enough money, the amount tied up won't significantly throw off my results

that or make some lame rule like i stop trading the last 5 days of the month or something.

Fred93

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Yep.  When LC implemented the secondary market, they sorta bolted on folio, and did a hack job on the accounting.  There seems to always be some money in flight between folio and LC.  Therefore, accurately figuring out how much your account is worth at any point in time is darn near impossible.

I have complained to LC about this.  They told me to just stop trading for a few days and it will all settle out.

I've just given up and ignore the $ in flight.

arcee49

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I believe your monthly LC statements accurately report cash and principal balance.  In other words, even if you have a pending Folio purchase, LC treats the cash as if it's still in your account.

I don't know how Folio sales are treated though; never done one.

mark78

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Re: how do you get a proper summary on your account, with folio cash tied up?
« Reply #3 on: February 10, 2019, 03:00:05 AM »
I find it works to add two figures from the LC Holdings page: Account Total + Pending Settlement. However I only buy on the secondary market. I don't know whether this would work if you buy on the primary market or sell on the secondary market.

mikedev10

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Re: how do you get a proper summary on your account, with folio cash tied up?
« Reply #4 on: February 10, 2019, 03:17:59 PM »
I find it works to add two figures from the LC Holdings page: Account Total + Pending Settlement. However I only buy on the secondary market. I don't know whether this would work if you buy on the primary market or sell on the secondary market.

thanks, that looks about right to me.

arcee49

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Re: how do you get a proper summary on your account, with folio cash tied up?
« Reply #5 on: February 11, 2019, 10:54:41 PM »
I find it works to add two figures from the LC Holdings page: Account Total + Pending Settlement. However I only buy on the secondary market. I don't know whether this would work if you buy on the primary market or sell on the secondary market.

Does the Pending Settlement amount give you the amount of dollars you spent/received or does it represent the principal of the Notes bought/sold?  (If Pending Settlement only applies to sales, I apologize.  I've only bought on Folio, not sold.)