Cache Long/Short manages wash-sale risk at the household level, not just inside a single account.
When you provide account information to Cache, it’s transmitted to Brooklyn Investment Group (BKLN), whose system monitors trading activity and applies automated controls to reduce the likelihood of disallowed losses. Restricted or employer-related securities can be excluded, and loss-realizing trades are coordinated to avoid repurchasing substantially identical securities within the wash-sale window.
This doesn’t eliminate wash-sale risk entirely, especially when external accounts or discretionary trades are involved, but it significantly reduces accidental violations. If your outside holdings change, let us know so they can be factored in.
A wash sale occurs when a position (or substantially similar position) is bought and sold within a 61-day window: 30 days before the sale, the day of the sale, and 30 days after. The rule applies across all accounts the investor owns, including IRAs, Roth IRAs, and accounts owned by a spouse.