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Transfer & FX Conversion

Transfers move assets between portfolios without a sale, while FX Conversions exchange one currency for another within a portfolio.

🔑 Key Properties

Property Transfer In Transfer Out FX Conversion
Code TRANSFER_IN TRANSFER_OUT FX_CONVERSION
Cash effect — — ⬆️⬇️ (swap)
Asset effect ⬆️ Increases ⬇️ Decreases —
Tax event Varies by jurisdiction Varies Varies

🔄 Transfer In / Out

Transfers model the movement of assets between broker accounts or portfolios without a sale. Common scenarios:

  • Moving shares from one broker to another
  • Inheriting assets
  • In-kind contributions to a different account type (e.g., ISA, 401k)

Cost Basis Preservation

When transferring assets, the original cost basis should be preserved. The transfer itself is not a taxable event in most jurisdictions (though rules vary).

💱 FX Conversion

Currency exchanges within a portfolio:

\[ \text{Amount}_{target} = \text{Amount}_{source} \times \text{FX Rate} - \text{Fees} \]

FX conversions may be:

  • Explicit: User deliberately converts currencies (e.g., EUR → USD)
  • Implicit: Broker auto-converts when buying a foreign-denominated asset

📊 Adjustment

The ADJUSTMENT transaction type is a catch-all for manual corrections to either cash or asset balances. Use cases:

  • Correcting import errors
  • Recording corporate actions not covered by standard types
  • Initial balance setup