PAMM Accounts

What is a PAMM account?

Percent allocation management module – PAMM

• A PAMM account includes a management module that allocates trade sizes based on a percentage distribution.
• This solution is widely provided by many forex brokers for investors and fund managers.
• With a PAMM account, an investor can allocate a portion of their account to one or more managers.
• The manager’s PAMM account serves as a large “central account” with capital equivalent to the combined value of the sub-accounts.
• he manager’s trades are automatically replicated in the sub-accounts on a percentage basis.
• For instance, if a trader executes a 100-lot trade on the EURUSD, the trade is divided among the individual sub-accounts (clients) into smaller portions, depending on the percentage of equity each sub-account holds relative to the master account.
• This implies that if the size of a single sub-account equals 1% of the main account’s equity, the trade size on this account will be 1 lot (1% of 100 lots).