A US Smart Basket may comprise 5 constituents as follows:
- Constituent A - 35%
- Constituent B - 30%
- Constituent C - 15%
- Constituent D - 10%
- Constituent E - 10%
If an order for the US Smart Basket at a total order value of $1,000 is placed, the constituent trades within the Smart Basket (assuming fully filled) will result in the client purchasing exactly $350 worth of Constituent A, $300 worth of Constituent B, $150 worth of Constituent C, and $100 worth of each of Constituents D and E, though the number of units purchased may vary due to price fluctuations. This is because Syfe supports fractional trading for US constituents. The total brokerage cost would be $3.7 (i.e. 50% discount compared to the cost of buying the constituents individually). In total, you will pay $1,003.7 for the purchase of this US Smart Basket.
The above is illustrated as follows:
| Constituent | Target Allocation | Order Value based on allocation (US$) | Value Purchased (US$) | Brokerage Cost (US$) |
| A | 35% | 350 | 350 | 0.74 |
| B | 30% | 300 | 300 | 0.74 |
| C | 15% | 150 | 150 | 0.74 |
| D | 10% | 100 | 100 | 0.74 |
| E | 10% | 100 | 100 | 0.74 |
| Total | 1000 | 1000 | 3.7 | |
Total amount charged with Fees: US$1,003.7
Q: Can you provide an example of how an AU Smart Basket will be executed?
A: An AU Smart Basket may have 3 constituents as follows:
- Constituent A - 40% (current market price A$100)
- Constituent B - 35% (current market price A$50)
- Constituent C - 25% (current market price A$10)
If an order for the AU Smart Basket at an order value of A$1,000 is placed, the Smart Basket will allocate A$400 to Constituent A, A$350 to Constituent B, and A$250 to Constituent C.
For each constituent trade within AU Smart Baskets, the trades are placed with a 2% upward buffer. Accordingly, market to limit trades will be placed at the following prices:
- Constituent A - A$102
- Constituent B - A$51
- Constituent C - A$10.2
The quantity traded will be rounded down to the nearest whole number because fractional trading is not supported. As a result, 3 units of Constituent A, 6 units of Constituent B, and 24 units of Constituent C will be purchased. The total brokerage cost for executing this Smart Basket will be A$7.47, which is a 50% discount compared to buying the constituents individually.
The maximum possible value of the order of A$1,007.47 will be withheld from the client's cash balance when the order is placed. Once the trades are executed based on the execution price, the remaining cash balance will be released to the customer.
The trade will only be active on the day of placement, and it will be automatically canceled afterward. This means that some trades may be filled while others may not, for example, if the price of the constituent remains above the 2% price buffer. You will be updated on the status of the trades in the history page of the Menu section in the app.
The above is illustrated as follows:
| Constituent | Allocation | Constituent Unit price (A$) | Order Value based on allocation (A$) | Buffer Adjusted price (A$) | Quantity | Amount Allocated (A$) | Brokerage Cost (A$) |
| A | 45% | 100 | 450 | 102 | 4 | 408 | 2.49 |
| B | 35% | 50 | 350 | 51 | 6 | 306 | 2.49 |
| C | 20% | 10 | 200 | 10.2 | 19 | 193.8 | 2.49 |
| Total | 1000 | 907.8 | 7.47 | ||||
After the execution of the Smart Basket, the total amount charged including fees will be A$915.27, and the unutilised amount will be released back to the customer.
The maximum price charged is A$915.27, assuming all the constituents have increased by 2%. However, in reality, it is quite unlikely that the market prices of the constituents will differ from those at the time of placing the Smart Basket order. Therefore, the actual cost of the order is likely to be lower than A$915.27.
