PAMM (Percentage Allocation Management Module) is an investment management module that allows investors to entrust their funds to professional money managers for trading. In PAMM system, the PAMM manager is responsible for executing the trades, while the PAMM investor shares in the profits and losses according to the proportion of the investment.
How does PAMM work?
A PAMM manager charges a performance fee as a percentage of the profits made from trading on behalf of PAMM investors, while also earning profits from their own trades.
In the event of a loss, these losses are proportionally shared with the PAMM investors. The PAMM manager, however, will not charge any performance fee during a loss.
The profits or losses generated from trades will be distributed at the end of each trading period. The duration of the trading period can vary, such as by days, weeks, months, calendar months, or rollover days, depending on the trading strategy set by the PAMM manager. For more details about PAMM, you can refer to the official website.