Who are PAMM money mangers?
A percent allocation management module is describes as a software application used predominantly by foreign exchange (forex) brokers to allow our clients to attach money to a specific trader managing one or more accounts .PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit.An investor gets to allocate his or her money in desired proportion to the qualified traders/money managers of his or her choice. FXSits traders manage multiple forex trading accounts with our own capital and such pooled moneys, with an aim to generate profits.
How does it work?
Investors join our PAMM program thus giving us control to manage their money. Through the PAMM investors simultaneously trade the pairs we trade. Thus exposing the investor to wins and loses.In the illustration the total Amount invested in the pool is $100 000 with 50% of the total pool being the traders/money managers (Investor D) investment, Investor C 15% ,Investor B 5% and Investor A with 30% share in the pool.
After a certain trading period the money manager makes a $12 500 profit for the pool. The Broker then pays the money managers a performance fee depending on how much their commission percentage is(n this case the performance fee was 20% which amounted to $2 500). The rest of the profit is then distrubuted amongst each investors according to their shares of the amount they invested into the pool.