An allocation in LUSID represents the distribution of fills in an execution to one or more orders that form the block that was placed.
For example, as a Portfolio Manager, you might have previously created two orders for two different portfolios, which a Trader has placed: one order for 100 AAPL US equity shares and a second order for 150 AAPL US equity shares. Having received fills for all 250 shares, LUSID allocates 40% of the shares to Portfolio A and 60% to Portfolio B.
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Allocations are continuously updated as LUSID receives executions. Fills can be allocated before a placement is 100% executed.
You can automatically allocate executions to your portfolios using two methods:
Based on the number of executions received back against the placements made.
Using more complex allocation algorithms. Read more on using LUSID's allocation algorithms.
Once one or more executions are allocated to a portfolio, the allocation can be booked as (that is, converted into) a transaction at any time. You can automate transaction booking in a way that suits you, such as booking transactions at market close, or when an order reaches 100% filled.