---
title: "What is rebalancing in LUSID?"
slug: "what-is-rebalancing-in-lusid"
tags: ["rebalance", "valuation", "portfolio"]
updated: 2025-04-22T15:27:18Z
published: 2025-04-22T15:27:18Z
canonical: "support.lusid.com/what-is-rebalancing-in-lusid"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://support.lusid.com/llms.txt
> Use this file to discover all available pages before exploring further.

# What is rebalancing in LUSID?

Rebalancing in LUSID is the process of using portfolio valuation metrics and rebalancing algorithms to see how a portfolio could be brought in line with a target, then generating the orders needed for the portfolio to meet that target.

Once LUSID allocates and books executions as transactions in a portfolio, the transactions are used to generate holdings. LUSID then values your holdings, offering an abundance of valuation metrics. LUSID can use these valuation metrics to [create more orders](/v1/docs/what-is-an-order-in-lusid) if you need to rebalance the portfolio, and automatically kick off the order lifecycle where necessary.

For example, as a Portfolio Manager you might hold 150 AAPL US equity shares with a market value of $25,000 in one of your portfolios but want to bring the target market value down to $0. You can rebalance your portfolio to create an order to sell 150 AAPL US equity shares. The order must pass a pre-trade compliance check, before being sent to a Trader for [blocking](/v1/docs/what-is-order-blocking-in-lusid), and so on.

![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/image(705).png?sv=2026-02-06&spr=https&st=2026-11-04T01%3A47%3A17Z&se=2026-11-04T02%3A47%3A17Z&sr=c&sp=r&sig=eozj4w65QUSYYuj2MBtX5gIXa%2BgpSYJkvC5RQCoSjHE%3D)

LUSID allows you to use a variety of rebalancing configurations and algorithms out-of-the-box, or create your own custom rebalancing algorithms, to customise portfolio rebalancing and subsequent order creation.

- [Read more on using LUSID’s out-of-the-box configurations and algorithms.](/v1/docs/configuring-rebalancing-use-cases-in-the-rebalance-dashboard)
- [Read more on creating your own rebalancing algorithms.](/v1/docs/defining-portfolio-rebalancing-algorithms)

You can interact with LUSID's rebalancing tools using the [LUSID web app](https://www.lusid.com/app/home), via **Portfolio Management > Rebalance**:![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/image(755).png?sv=2026-02-06&spr=https&st=2026-11-04T01%3A47%3A17Z&se=2026-11-04T02%3A47%3A17Z&sr=c&sp=r&sig=eozj4w65QUSYYuj2MBtX5gIXa%2BgpSYJkvC5RQCoSjHE%3D)

## Related

- [Using the Rebalance dashboard control panel](/configuring-rebalancing-use-cases-in-the-rebalance-dashboard.md)
- [How do I roll or unwind a futures contract?](/how-do-i-roll-or-unwind-a-future.md)
- [Defining portfolio rebalancing algorithms](/defining-portfolio-rebalancing-algorithms.md)
- [How do I target analytic values in the Rebalance dashboard?](/how-do-i-target-analytic-values-in-the-rebalance-dashboard.md)
- [What is a portfolio mapping and how do I create one?](/what-are-portfolio-mappings.md)
- [How do I run cash equitisation in the Rebalance dashboard?](/how-do-i-run-cash-equitisation-in-the-rebalance-dashboard.md)
- [Trading conventions and lot sizes](/trading-conventions.md)
- [How do I designate an instrument or instrument type as non-tradeable?](/how-do-i-designate-an-instrument-as-nontradeable.md)
- [How do I import rebalance targets from a CSV file?](/importing-rebalance-targets-from-a-csv-file.md)