How to add or remove a stock trade restriction for your direct index portfolio(s)

You’re able to restrict trading of a stock for all trading conducted in any direct index portfolio. Once you add this restriction, we won’t trade the restricted stock in any of your direct indices. You can add this restriction when you’re setting up your direct index or at any time within your Account settings. You are limited to 5 stock restrictions total. We’ll walk you through all the ways you can implement or remove the trade restriction below: 

1. Adding a trade restriction to a stock when you setup your direct index
   When you set up a new direct index portfolio, you’re able to create a trade restriction within the “Customize your index” section after you’ve selected or skipped the sections to edit the sectors and stocks. You can search for a name or symbol and add it as a stock you do not want our direct indexing algorithm to trade. This restriction will be applied to the direct index you’re setting up and any future direct indices you create until you remove it. See below how you can later remove the restriction.

2. Adding a new trade restriction or removing an existing trade restriction when you set up a second direct index
   You’re able to add a new trade restriction to your direct index each time you set one up and you’re also able to remove a restriction you’ve already added. If you’ve already added a stock trading restriction, you’ll be able to see that it’s restricted in the “Customize your index” section of the direct index setup when you’re on the “Trade restrictions” page. You’ll see it on the right-hand side of the screen with an “x” next to it. If you no longer want the trade restriction, you can click the “x” to delete it. Removing this trade restriction will remove it completely from all your direct index strategies. Also, adding any new stock in this section will apply the trade restriction to any indices you already have invested on the platform, too.
   See below on how to make trade restriction edits outside the setup process of a direct index strategy. 

3. Adding or removing a trade restriction after you’re invested in a direct index
   
   You can make changes to your trade restrictions at any time within your Account settings by clicking on your name in the upper right-hand corner then selecting “Account settings in the dropdown menu. From there, you’ll click the “Investing” tab and scroll to the bottom box labeled “Trade restrictions” and click on “View trade restrictions >.” You’re then able to search for a stock name or symbol and add it as a restricted stock. You can also see any stocks that have been trade restricted and click the “Remove restriction” link to stop restricting trade on that specific stock.
   Please keep in mind, if you place a restriction during the time that our direct indexing is trading one of your existing accounts, it may not take effect that day. Additionally, if you remove a restriction on a stock that is part of an index in which you’re invested, by removing the trade restriction the stock will still have its target weight in that index and the algorithm will trade to bring that stock to its target weight, which may result in capital gains or losses. You will need to exclude the stock from your index if you do not want your direct index to trade it once the restriction is removed.