This innovative product allows you to earn on the financial markets without trading independently: by investing funds in the accounts of experienced traders. The traders who manage the PAMM Accounts receive additional profit for successful trades.
The Basic Idea Behind the PAMM Account
- A manager opens a PAMM Account, allocating a certain amount of his initial investment as the Manager's Capital. He will be unable to withdraw from this amount (an additional incentive for the manager to demonstrate caution in his trading). Next, he designs his Proposal, in which he lists the terms for investors. This includes the percentage of their share of the profit they will pay him in compensation.
- The manager begins making trades on the account using both his personal capital and the funds of his investors. Profits and losses on the account are divided among the manager and investors, based on their share in the account.
These are several PAMM Accounts grouped into one portfolio. This allows you to minimize risks: temporary misfortune of one manager will be compensated by profitable trades from another manager. Compile your own PAMM Portfolio, give investors access to it and receive addtional profit.
A PAMM Portfolio is a collection of PAMM Accounts combined into a single entity. This type of investment allows the investor to diversify their risk as they can select PAMM Accounts with the optimal balance of potential risk and reward, as well as the amount to invest.
The Basic Idea of PAMM Portfolios
- The manager creates a portfolio which includes of a number of PAMM Accounts, and invests their own money serving as a guarantee that they will oversee the portfolio prudently. The manager can change the constituent PAMM Accounts which make up the portfolio as well as the share of these accounts in the portfolio by using his own capital and funds provided by investors.
- The investor monitors the effectiveness of the manager's portfolio from the site, and then invests in the PAMM Portfolio which they most like the look of.
- Trading is undertaken in the constituent PAMM Accounts of the PAMM Portfolio. Learn more about PAMM Accounts in the section "How the PAMM Account Works".
- The profit and loss is divided proportionally between all the participants in the PAMM Portfolio. The manager receives compensation as a share of the profit from investors.