MAM/PAMM Accounts

What is a PAMM account?

Percent allocation management module – PAMM

• The PAMM account features a management module that distributes the sizes of trades according to an allocation percentage.
• This solution is offered by many forex brokers for investors and fund managers.
• With a PAMM account, an investor can also allocate a percentage of his account to one or more managers.
• The manager’s PAMM account is a large “main account”, whose capital is equal to the sum of the sub-accounts.
• The manager’s trades are automatically replicated in the sub-accounts according to a percentage basis.
• For example, if the trader makes a 100-lot trade on the EURUSD, the trade is divided among the individual sub-accounts (clients) into smaller parts based on the percentage of equity of each sub-account in relation to the master account.
• This means that if the size of an individual sub-account is equal to 1% of the main account’s equity, the size of the trade on this account will be 1 lot (1% of 100 lots).