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PAMM Rollover

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Mohamed Mohamady
486
Mohamed Mohamady 2016.01.12 02:42 

Hello,

I wanted to open a PAMM account & I was surprised by "PAMM Rollover". According to FXOpen, which I've got from them THREE different answers, one states that they close the open trades daily and re-open them again for both Master & Slave, the second answer stated that they close only Slave trades, while the final answer was that they don't close any & it's just a fake close....

I had an experience with a broker called ForexClub couple of years ago when it used to close the open trades daily & re-open them again, such behavior caused me to lose money because with every closed order, the equity decrease if the closed orders were in loss.... So I'm afraid that this is what happens with the "PAMM Rollover".

So I was asking those have experience with managing PAMM accounts, what really happens with "PAMM Rollover"..?!

Happy New Year

Stuart Browne
5819
Stuart Browne 2016.01.12 03:11  
Mohamed Mohamady:

Hello,

I wanted to open a PAMM account & I was surprised by "PAMM Rollover". According to FXOpen, which I've got from them THREE different answers, one states that they close the open trades daily and re-open them again for both Master & Slave, the second answer stated that they close only Slave trades, while the final answer was that they don't close any & it's just a fake close....

I had an experience with a broker called ForexClub couple of years ago when it used to close the open trades daily & re-open them again, such behavior caused me to lose money because with every closed order, the equity decrease if the closed orders were in loss.... So I'm afraid that this is what happens with the "PAMM Rollover".

So I was asking those have experience with managing PAMM accounts, what really happens with "PAMM Rollover"..?!

Happy New Year

Hi Mohamed

You need the rollover to occur so things like profit calculations, shares, deposit/withdrawals etc can be processed. Each broker handles PAMM rollover differently so it's good that you checked into it.

Looking at the FXOpen FAQ here, it appears that they only close slave account trades (ie not the master), orders are re-opened at the same quote they were closed at and the close/open only appears in the reports, not the trading platform. So I would suggest that these are indeed "virtual" closes used only for accounting/reporting purposes.

Any broker who forces your  trades to close and re-open every day at different prices I would run a mile from!! :)

Mohamed Mohamady
486
Mohamed Mohamady 2016.01.12 22:03  
Stuart Browne:

Hi Mohamed

You need the rollover to occur so things like profit calculations, shares, deposit/withdrawals etc can be processed. Each broker handles PAMM rollover differently so it's good that you checked into it.

Looking at the FXOpen FAQ here, it appears that they only close slave account trades (ie not the master), orders are re-opened at the same quote they were closed at and the close/open only appears in the reports, not the trading platform. So I would suggest that these are indeed "virtual" closes used only for accounting/reporting purposes.

Any broker who forces your  trades to close and re-open every day at different prices I would run a mile from!! :)


Hello Stuart :)

Since I used to have an account with FXOpen & just opened a new ECN with them, I thought to try the PAMM....

This is FXOpen's reply to my ticket, which says it closes the orders for both "Master & Slave".... Because of such conflict, I'm still looking for the clear answer from them & another broker or Demo-PAMM, Do you recommend me a broker that I could avoid such problem with it..?! Also, do you know a broker that offers Demo-PAMM..?!



Stuart Browne
5819
Stuart Browne 2016.01.13 01:28  
Mohamed Mohamady:


Hello Stuart :)

Since I used to have an account with FXOpen & just opened a new ECN with them, I thought to try the PAMM....

This is FXOpen's reply to my ticket, which says it closes the orders for both "Master & Slave".... Because of such conflict, I'm still looking for the clear answer from them & another broker or Demo-PAMM, Do you recommend me a broker that I could avoid such problem with it..?! Also, do you know a broker that offers Demo-PAMM..?!



Hi Mohamed

Well that answer from their support totally contradicts what it says in their FAQ! I'd suggest jumping on their live chat to try to get to the bottom of it.

In answer to your other question, no sorry I don't know of any broker that provides a demo PAMM.

Cheers
Stu 

Alain Verleyen
Moderator
30755
Alain Verleyen 2016.01.13 11:59  
Stuart Browne:

... So I would suggest that these are indeed "virtual" closes used only for accounting/reporting purposes.

Any broker who forces your  trades to close and re-open every day at different prices I would run a mile from!! :)

Of course, it should be "fake" close. If it's anything else, just change your broker.
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