Thread: 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

This is a good information for traders or newbie traders. I only want to saya that nowaday forex online trading is more easy and this is why the information is a goo d information for all

PAMM accounts are good for traders who dont have time or finding it hard to learn forex trading, they have to just invest in PAMM account and thier investment will be managed by Fund managers, i ve invested in liteforex PAMM account and their results were go, you should check results before investing, and then invest in one with stable returns.

So a Pamm account is in fact a pool where everybody can invest money and is managed by fund managers?

Hello I am new In trading and have very basic knowledge .
I am not much aware about PAMM accounts.
What is PAMM accounts ??
and
What is the use of such PAMM accounts ???