A derived transaction portfolio is an exact replica of its parent at the point it is created. See how to create a derived portfolio.
A derived portfolio inherits:
Every transaction, including any
Transactionproperties and amendment history.Every
Portfolioproperty.Portfolio settings such as accounting method, amortisation method, transaction type scope, list of sub-holding keys and so on. Note there are some inherited settings that you should never subsequently change, such as creation date and instrument scope.
A derived portfolio inherits subsequent changes to the parent until such time as you change an attribute directly in the derived portfolio. If you do this:
The change does not flow back to the parent.
The link between the two portfolios is now broken for this attribute. The derived portfolio no longer inherits subsequent changes to this attribute. It is not possible to reinstate this link in most circumstances.
Required reading: Understanding inheritance in derived portfolios
Derived portfolios in conjunction with scopes are a powerful construct. For example, to do pre-trade what-if analysis, you can create a derived portfolio in a new scope linked to the parent portfolio in the ‘official’ scope. You can then book scenario transactions in the derived portfolio and compare the performance of the two without affecting the live book. For a demonstration, see this Jupyter Notebook.
Note that you can derived a portfolio from another derived portfolio if you wish.