Your investments on Double are considered liquid, meaning you can convert them into cash. However, the process involves a few steps and isn't instantaneous. Here's a breakdown:
Understanding Your Cash Target
Your cash target is the key to managing your liquidity on Double. It represents the percentage of your portfolio you want to hold in cash. To initiate a withdrawal, you'll need to adjust your cash target.
Trading and Liquidation
Double trades once per day in a "basket" manner, meaning we execute trades for all users simultaneously. If you want to withdraw all your funds:
Set Your Cash Target to 100%: This signals to us that you want to convert all your investments into cash. If you do not update your cash target, we will not sell your investments.
Disable Wash Sale Prevention: Wash sale prevention is a feature designed to help you avoid certain tax implications. For a quick, complete liquidation, you need to turn this feature OFF in your account settings or from the Weight change page. There are tax consequences to turning off this protection - if you are OK waiting until any wash sales timeout (at most 30 days from today), you should leave this setting enabled. If you want a quick liquidation regardless of the wash sale consequences, please turn it off.
Next Trading Day Liquidation: On the next trading day after you've made these changes, we will liquidate all your holdings.
If you only want to withdraw a portion of your funds, you can set your cash target to a lower percentage. For example, setting it to 50% would result in approximately half of your investments being converted to cash.
Withdrawing Your Cash
Once your holdings are liquidated, the cash will be available in your Double account. You can then withdraw it to your linked bank account via:
ACH Transfer: This is a standard bank transfer.
Wire Transfer: This is a faster but typically more expensive transfer method.
The withdrawal process usually takes one full banking day. However, delays can occur due to various factors, such as bank processing times, holidays or issues related to your account.
While the process isn't instant, your investments on Double are liquid because you can ultimately convert them to cash and withdraw them. The steps outlined above ensure a smooth and orderly process for managing your investments and accessing your funds.