← Back to Learn
To buy and sell so a portfolio goes back to its planned mix. As prices move, some holdings grow bigger than planned and others shrink. A rebalance trims the big ones and adds to the small ones. A strategy can also swap stocks in or out when its rules pick new ones. When you follow a strategy here, its paper portfolio rebalances on the schedule you set, such as weekly or monthly, after the market closes.
Example:
Your plan is half stocks and half cash. Stocks rise to 60% of the total, so you sell some to get back to half.