Managing Your Cash Position
After the portfolio has been set up for the first time, we want to introduce how you can manage your cash position. It is recommended that users familiarize themselves with this concept before starting to log transactions.
Automatic Deposits
As a default option for all users, Portseido uses automatic deposits mechanism. Here is how it works:
- When you entered a cash outflow transaction (i.e. Buy, Fees, Interest expense, etc.) without sufficient funds on the transaction date, the system will add a deposit transaction automatically for you with the amount just enough to cover such a transaction.
- In case there are some cash recorded in your account before the transaction date, that balance will be utilized first. Then system will generate auto-deposit to cover remaining amount.
How to check if Automatic Deposits are applied to your account?
- Dashboard Page (Home) - Check a table in My Holdings section. Look for a "$ Cash" line. You will see a dropdown where a breakdown of two cash deposit types are displayed.
- My Deposit Input indicates cash positions that are manually input by you.
- System Auto Deposit indicates cash positions that are generated from auto-deposit feature.
- Transactions Page - There are "My Input" and "Adjusted" tabs for you to check.
Example of Automatic Deposits
Case 1 - No Cash Position added at all
What you do:
- You haven't add any cash position to your account ever before.
- You log a first stock buying transaction: 1 share of $GOOG at the price of $170 on August 1st, 2024.
What actually happens:
- Since there are no cash position before, the system will add cash position for you automatically in the background.
Transactions Page > Adjusted
- In "Adjusted" tab in Transaction Menu, you will see two separated lines; Buy and Deposit
- The latter is added automatically, hence you can see a cash deposit of $170 with "auto deposit" icon
Transactions Page > My Input
- In the "My Input" tab, only a buy transaction that is added by user will be displayed in this tab.
Case 2 - Partial Cash Position Available
What you do:
- You have added a cash position before logging a buy transaction. In this case, there is a $150 already deposited on January 1st, 2024.
- You buy 1 share of $GOOG at the price of $170 on August 1st, 2024.
What actually happens:
- Since cash that you have on hand is not enough to cover a buy transaction, the system will add cash position for you automatically in the background for the remaining amount.
- Hence, $150 will be used from your manual deposit, meanwhile the system will create an auto-deposit transaction of $20 to cover the rest.
Transactions Page > Adjusted
- You can see an auto-deposit transaction of $20 as shown in the image.
Transactions Page > My Input
- In the "My Input" tab, you can see only a $150 manual deposit action and a buy tranaction.
Case 3 - Sufficient Cash from Manual Inputs
What you do:
- You have added a cash position before logging a buy transaction. In this case, there is a $20000 already deposited on January 1st, 2024.
- You buy 1 share of $GOOG at the price of $170 on August 1st, 2024.
What actually happens:
- Since cash that you have on hand is sufficient to cover everything, no auto-deposit transaction is involved.
- Hence, $170 will be used from your manual deposit solely.
- Both tab will look similar as there are no auto-deposit transactions.
Transactions Page > Adjusted
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Transactions Page > My Input
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Summary
In conclusion, the management of trading logs is dependent on individual investor preferences. If you want to just log assets that you buy, you don't have to care much about cash positions given auto-deposit is already handled by the system.
On the other hand, for investors who prioritize accurate cash position tracking, you should be aware of this mechanism. This concept becomes particularly relevant when Short selling and Margin trading features are utilized.
In case that you run into any issues, you can reach out for help by contacting support@portseido.com. Support is readily available to aid users with their inquiries.