Jul 4 2016
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PAMM or Percentage Allocation Management Module refers to a trading account used by one or more investors. There is a dedicated manager looking after a particular PAMM account whereby different traders are invited to invest funds. It is the dedicated manager who carries out trading on the investors’ behalf. One of the biggest advantages of this particular account is that even novice traders can initiate their careers – knowing full well that an experienced manager is there to take care of their funds. The manager cannot withdraw his capital unless his fund is liquidated thereby guarantying the due safeguard to investors that they deserve. PAMM is backed by a very simple investing process. Given below are further details of PAMM. Please read on.
PAMM: How it works
A PAMM account is started by a fund manager. He is the one who invests in the account at first and then puts forward his proposal or invitation for other investors. The proposal put forward by him includes several details including the ones mentioned below:
? Minimum Capital Account
? Success fee
Minimum Capital Account and Success Fee
Though you can well understand that the Minimum Capital Fee is the minimum amount of money that one needs to invest in order to start the PAMM account and that the success fee is the charge spelt out by the manager for the profits generated by him- if you are really eager to initiate your career in PAMM then you need to know more about the same. Those who choose to invest in PAMM accounts are mostly not professional traders but have a certain degree of interest in investing. They are mostly involved in day jobs and other activities that keep them from online trading. Here are further details.
The Minimum Capital needed is the minimum capital that you need to invest in order to be a part of the PAMM account. The minimum amount required is $500.
The Success fee is the fee which is calculated on the basis of High Water Mark. In order to have a clear understanding of the success fee you need to understand what High Water Mark exactly is. High Water Mark refers to the peak value of the funds touched during a month. The High Water Mark ensures that the fund manager is only paid when he has delivered results for investors. This acts as a definite safeguard for you. Not to forget that the fund manager will not receive any money until your fund reaches the high watermark level during a month.
One of the most notable benefits of PAMM accounts is that it spells a win-win situation for both the investor and the fund manager. While the investor can still dream of being a part of online trading without really being acquainted with its finer details (they capitalize on the skills of the fund managers), the fund managers can expect to compound their profits. To find out more about PAMM, please click on this ‘link’ and stay informed.