Investment in pamm accounts without sending money to any one
A percent allocation management module, or PAMM, which may also be referred to as percent allocation money management, describes a software application used predominantly by foreign exchange market (forex) brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader's activity results (trades, profit and loss) are allocated between managed accounts according to the ratio.
Because currency trading and other forms of arbitrage achieve profitability within very narrow margins, typically, a PAMM system allows more money to be brought into play while distributing the risk of one trader across (usually) multiple investors.
Lets assume that there are 3 managed accounts under trader's management:
1. USD account with deposit of $ 100,000 and ratio 9.3%
2. EUR account with deposit of € 400,000 and ratio 49.5%
3. GBP account with deposit of £ 300,000 and ratio 41.2%
Depending on funded amounts different ratios are applied for managed account (for ratio calculation all amounts are converted in USD equivalent based on market rate). In case if, for example, Trader/Money Manager decides to BUY 10 mio EURUSD, PAMM allocates the order between managed accounts according to its ratio. Each managed account has its own part of position and corresponding Profit & Loss. In current example the first managed account will get position LONG 930,000 EUR/USD, the second - LONG 4,950,000 EUR/USD and the third - LONG 4,120,000 EUR/USD. Resulting profit & loss will be automatically calculated for each account depending on market prices.
For good pamm account options visit www.dynamicprofit.net
George Stanley
PS: This is not Hyip
