Financial Theory

This section documents the financial models, conventions, and definitions used throughout LibreFolio.

Overview

Accurate financial calculations are critical for a portfolio tracker. LibreFolio implements standard financial conventions to ensure consistency with broker reports and real-world data. This section covers the core concepts from asset types to the formulas used for performance analysis.

Key Concepts

• Asset Types: Definitions of all supported asset classes (Stocks, ETFs, Crypto, etc.).
• Transaction Types: Definitions of all financial operations (Buy, Sell, Dividend, etc.).
• Day Count Conventions: How the number of days between two dates is calculated for interest accrual.
• Interest Types: The difference between Simple and Compound interest.
• Compounding: How compounding frequency affects the final value.