What is PAMM? PAMM Account Operation?

What is PAMM? PAMM Account Operation? Let Hyipok.com find out through the article today!

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What is PAMM?

What is PAMM? How does the PAMM account work?

PAMM is an acronym for the Percent Allocation management module, a type of capital-raising account to be managed by traders.

PAMM account is a low-risk investment service that can help clients generate passive income online. The investment in the PAMM account is available in automatic mode, which is a trading account with profit and loss proportionally divided by the managed program of the PAMM.

PAMM Account Operation

Explanation of PAMM account activity:

When you want to open a special PAMM account, you must have a required minimum capital and define the terms of investment (minimum deposit, investment period, insurance premium) as suggested by the manager. .

A specific example of PAMM Account Activity is as follows:

The PAMM account has a capital of $ 10,000, is capitalized at the following rate:

Account 1: $ 3,000 = 30%.
Account 2: $ 4,000 = 40%.
Account 3: $ 3,000 = 30%.

When the manager of this account trades 10 lots, the accounts will receive the corresponding ratio including:

Account 1: 3 lots.
Account 2: 4 lots.
Account 3: 3 lots.

And when the account takes profit of $ 1,000, the profit will be divided about each account as follows:

Account 1 receives $ 300.
Account 2 receives $ 400.
Account 3 receives $ 300.

Accordingly, the manager of this account can collect fees from investors through the child account. Fees can range from 10-30%, this amount will be deducted directly from the accounts.

What is the meaning of the PAMM account?

PAMM account includes 2 components: fund manager and investor .

What a PAMM account means to a fund manager : If a trader trades well but doesn’t have enough capital to make the desired profit, he or she can become a PAMM fund manager.

The PAMM fund manager will provide capital management services, allowing investors to contribute their own capital to the PAMM fund and earn additional profits calculated on their contributed capital, according to a percentage that the PAMM fund manager regulates.

What the PAMM account means to investors: If a new trader enters the Forex market does not have enough in-depth knowledge to make a profitable trade or an investor simply wants to make passive money, they can Become an investor in the PAMM fund.

When the PAMM fund makes a profit, the investor will earn a corresponding profit and pay a management fee to the PAMM manager, according to the percentage specified by the fund manager.

The advantages and disadvantages of PAMM accounts

The advantages of PAMM accounts

The PAMM fund manager stands with the same benefits as investors

The PAMM fund manager wants to share profits, the PAMM must first make a profit, it is a must. So the manager always wants PAMM to have as much profit as possible.

In addition, to open a PAMM fund, the manager needs to deposit a minimum amount (depending on the regulations of each Forex broker), so if the fund loses, the manager also loses their capital.

PAMM account information is completely transparent

The Forex broker provides real trading history and offers a variety of indicators that statistically make the trading results of PAMM accounts.

The PAMM manager cannot hide anything from the investor.

There are PAMM account filters according to each specific criteria

Choosing a PAMM account according to investor criteria can be done easily thanks to the filters provided by the Forex broker, in just a few minutes.

The PAMM fund manager cannot withdraw investor funds

In the financial market in general and the Forex market in particular, fraud happens like a meal. For the Forex market, the phenomenon of raising capital or receiving trust is rampant, causing heavy losses to investors.

Investors easily manage their capital

When depositing money into the PAMM fund, investors can track, decide to add, withdraw or withdraw all their money in the PAMM fund quickly and conveniently.

In addition, investors can invest in multiple PAMM funds at the same time, helping to limit financial risks.

In a nutshell with a PAMM account, investors can actively and reasonably manage capital.

The disadvantages of PAMM accounts

Investors can lose all the money in the PAMM fund

If investors cannot choose good PAMM funds, investors may lose heavily or lose all their invested money.

The PAMM fund manager can lose reputation in the community

In addition to losing the funds in the PAMM fund, the manager will likely lose his reputation in the Forex community.

If the amount of the fund is too large, there may be many other unforeseen consequences.

How do I choose a manager for a PAMM account?

Before making an investment decision, investors can check the account manager’s trading results through a PAMM account tracking system, organized with a broker or any other system. any other system. After analyzing the necessary terms, the investor will make a decision whether to invest or not.

So the question here is how to choose the best account with the reviews of PAMM managers?

Surely, in the list of PAMM managers there will be many people, so how to choose the best manager? It is possible that the different interfaces of PAMM accounts will make it difficult for you to choose. However, we have a variety of criteria for choosing a reliable account as follows:

What is the age of the PAMM account

First, you can filter PAMM accounts by age. This is quite an important criterion to choose a good account. It excludes the possibility of luck of the PAMM account manager. Plus, accounts with a long history can be analyzed more in-depth.

Accordingly, you should not consider PAMM accounts aged 6 months or more to ensure more safety. Besides, for newly opened accounts, their old history also needs to be analyzed.

What is PAMM maximum withdrawal standard?

The second criterion behind the age of PAMM accounts is the maximum withdrawal level. You should choose accounts with a maximum withdrawal amount of no more than 40% for beginner investors. Choose the managers manually or with the “safe” forex robot.

What is the profitability of the PAMM account

Profitability is also an essential criterion when choosing a PAMM account. To ensure balance, consider profitability in parallel with the criterion of maximum withdrawal. Usually, the profitability ratio: the maximum drawdown is no more than 1: 3.

In addition to the above criteria, there are other criteria needed when choosing a PAMM account such as the manager’s capital and the investors’ capital, … Considering these will help you have a clearer view. about that PAMM account.

In a nutshell, make informed decisions when making decisions to invest in PAMM accounts.

Good luck!

Note: Forex investment always has many potential risks. Need to consider carefully before investing.

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