PAMM Management Mode
PAMM is abbreviation of percentage allocation management module, that means fund managers can under one master account, while trading multiple customer funds.
The master account is just a reflection of the amount of various customer accounts. The position of the margin, profit and loss, commission and the accumulated charges, according to the main account of scale, assigned to each customer account.
For example, fund manager in the management of 5 accounts, account is different: USD, EUR, GBP, CAD, AUD.
1. (Client A) USD Account funds is $ 8.000.000，Total capital ratio of 32% 。
2. (Client B) EUR Account funds is € 6.000.000，Total capital ratio of 24% 。
3. (Client C) GBP Account funds is ￡ 5.000.000，Total capital ratio of 24% 。
4. (Client D) CAD Account funds is C$ 4.000.000，Total capital ratio of 12% 。
5. (Client E) AUD Account funds is A$ 3.000.000，Total capital ratio of 8% 。
Management accounts in different proportions depending on the amount of account.
To calculate the ratio, all amounts are converted into U.S. dollars at market prices.
Fund manager decides to buy 100 million order of EUR / USD currency pair, PAMM management will be allocated according to the proportion between the administrative account. Each account has its own position and the corresponding portion of profit or loss. In this example,
1. (Client A) USD Account funds have LONG positions 32 million EUR/USD 。 （32% X 100 million）。
2. (Client B) EUR Account funds have LONG positions 24 million EUR/USD 。 （24% X 100 million）。
3. (Client C) GBP Account funds have LONG positions 24 million EUR/USD 。 （24% X 100 million）。
4. (Client D) CAD Account funds have LONG positions 12 million EUR/USD 。 （12% X 100 million）。
5. (Client E) AUD Account funds have LONG positions 8 million EUR/USD 。 （ 8% X 100 million）。
Profit and loss of each account will be calculated automatically based on market price.
The flow chart of funds to place an order and allocation of funds.