PAMM Accounts


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PAMM Accounts


 

Percentage Allocation Management Module (PAMM), also known as percentage allocation money management, shall attract investors who are interested about earning in the forex market, but due to some circumstances they cannot do it in person; also, it is intended for traders who are not certain of their trading skills but are willing to gain profits as soon as possible. PAMM is a trading account operated by a manager, not a trader.

The manager can help funds grow, but it is not allowed to withdraw profits. PAMM Forex brokers or dealing desks offering such service liaise an investor with manager and broker for the purpose of easy and safe co-operation.

The PAMM account offers a management module that breaks down the size of trades with a percentage of allocation. This solution is offered by many forex brokers for investors and fund managers. With a PAMM account, an investor can also allocate a percentage of his account to one or more managers.

The PAMM account of the manager is a large “main account” whose capital is equal to the sum of the sub-accounts. The manager’s trades are automatically replicated to the sub-accounts based on a percentage. For example, if the trader takes a trade of 100 lots on the EURUSD, the trade is divided into the individual sub-accounts (customer accounts) in smaller parts based on the percentage of equity of each sub-account relative to to the master account. This means that if the size of an individual sub-account is 1% of the principal account’s principal amount, the trade size on that account will be 1 lot (1% of the 100 lots).

 

For Investors

If you don’t have enough knowledge to trade on the Forex market, or if you don’t have enough time for it, choose a PAMM account or a ready-to-use PAMM portfolio and invest your funds!

For Managers

If you are an experienced and successfull Forex trader, it’s time to try your hand at managing a PAMM account. Trade and earn a compensation from your investors, regarding your profitable trading.