2 currencies portfolio / default cash account

[ben.com]

Hello Mark,

My broker has opened two cash account on a single portfolio (one in euros (my default currency) and one in dollars) . My dollar transactions are automatically charged to the account in dollars (and vice versa for my transaction in euros).
How to manage the default cash account of this porfolio ?

Thanks

[ben.com]

Hello Mark,
I hope everything is OK
Usually, you answer very quickly

[aviator]

Hello Mark,
I hope everything is OK
Usually, you answer very quickly

Highly unusual that Mark hasn't responded to your -- and others -- post. Hope all is well with him.

[Mark]

Hi ben.com,

I apologize for the delay. It appears the email notifications for new posts were not being sent for a while. I will have to investigate this. I also took last Friday off work, and was out of touch for a long weekend. I am fine, thanks to you and aviator for your concern!

To answer your question... You can only have 1 default cash account per sub-portfolio, so I would recommend setting up 2 sub-portfolios within your account, like this:

Code: Select all

- Account
  - USD Investments
  - EUR Investments

and then you can assign each of the lower level sub-portfolios their appropriate default cash account. This will work fine on existing investments, but when you buy something totally new, it won't get entered into any default cash account, and just dumped into the "Account" level. You would then need to move those investments into the appropriate sub, and record the corresponding cash entry.

You could also do it like this:

Code: Select all

- Account
  - USD Investments

where you leave all your EUR investments in "Account", and assign the EUR cash at the Account level. This offers a slight benefit, that any new investments will get put into the EUR bucket, but if you buy USD, then you would have to un-do this, and move them. The best solution probably depends on how many new investments you buy, and which currency they are in.

[ben.com]

Nice to see you're OK
Thanks for your very precise response (as usual )