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If I hold a position in a stock that can be elected to be redeemed for a fixed amount of cash, how can I simulate that transaction in QC to get the right accounting? Can I create a fake sale transaction and specify the execution price? Or could I sell it at market and book some sort of accounting adjustment for the difference from the actual execution price and the redemption amount? Any other idea?
Thanks.
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Louis Szeto
Hi David
We can manipulate the filling of the trade by a custom filling model. Please check this doc for example. It is possible to add cash after filled order within it.
Could you please provide a concrete example to elaborate on what is the behavior of that "redemption" would look like for further assistance?
Best
Louis Szeto
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
David Avraamides
Thanks, Louis. The use-case I'm referring to is for a SPAC that is trading below $10 before the redemption tender date, in which case the holder can elect to tender their shares for $10 cash. There are times where these shares are trading below $10 and it may be advantageous to tender them rather than hold them through the despac event. So I'd want a way to tell the algorithm that the shares were “sold” at $10 even though the market price never reaches that level.
I'll look into a custom FillModel. I think I could use a custom Tag to indicate that the intent is to tender the shares.
David Avraamides
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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