2792

• 36%
(20)
• 35%
(19)
• 16%
(9)
• 13%
(7)
Total voters: 53
5748

I am not sure but all depends on how good is the money manager.
1776

what exactly is a pamm account?
5748

Percent allocation management module - Wikipedia, the free encyclopedia
• en.wikipedia.org
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...
Moderator
33772

erdogenes:
what exactly is a pamm account?

What is PAMM?

angevoyageur, 2013.10.01 23:06

## What is a PAMM?

The Percent Allocation Management Module (PAMM) is a technical solution provided by brokers and allowing clients to have their accounts managed by a trader appointed by them on the basis of a limited trading 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.

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.

7845

Like it like it.

187

angevoyageur:

i think they ok
5748

I guess what is important to know about a PAMM account is its track record