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Research note · Published 12 August 2026 · 4 min read

Portfolio Rebalancing Glossary

Plain definitions of the terms used on Rebalance Cloud: basket, drift, target weight, cost basis, market-open order, connector, and more.

By Rebalance Cloud · Last reviewed 12 August 2026

Direct answer

What do the terms on Rebalance Cloud mean?

Basket is the buy/sell list; target weight is the percentage you plan to hold; drift is the gap between current and target; cost basis is roughly what you paid; a market-open order sends at the open with a limit; the connector is the small program on your computer that talks to IBKR.

Core terms

  • Basket: the list of buy and sell orders for one rebalance
  • Target weight: the planned percentage for a position
  • Current weight: the percentage you hold today
  • Drift: the difference between current and target

Order terms

  • Market-open order: sent at the open, with a limit price
  • Limit price: the worst price you accept
  • Fractional shares: buying or selling part of a share
  • Fallback: retrying later in the day if the open order is rejected

Account terms

  • Connector: the small program on your computer
  • Gateway/TWS: IBKR software that connects to your account
  • Paper account: a simulated account for testing
  • Cost basis: roughly what you paid for a position

Limits

  • Definitions are general and may differ by broker or country.
  • This glossary is educational, not advice.
  • Check IBKR documentation for exact product behavior.

Common questions

Questions about this workflow

Is a basket the same as an order?

No. A basket is the whole list of orders for one rebalance. Each row in the basket is one order.

What is a paper account for?

A paper account simulates trading without real money. It is the safest place to test a connector and a basket before going live.

Put this into practice

Connect your Interactive Brokers account, review your portfolio drift, and generate a checked basket on your schedule.

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