A percent allocation management module, commonly known as PAMM, also sometimes referred to as percent allocation money management, describes a software application used predominantly by forex brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts.
Managed accounts can be funded in different currencies and (subject to agreement) deposited with different institutions. Depending on the size of the deposit each managed account has its own ratio in PAMM. Total sum of all ratios under one PAMM account is always equal to 100%. Trader’s activity results (trades, profit and loss) are allocated between managed accounts according to this ratio.
PAMM trading is performed on the same suite of TradeFX self-trader platforms with all the same functionality of TradeFX Trader. TradeFX Trader Pro and TradeFX Web Trader.
PAMM Functional Specification:
- Possibility to add and/or remove funds and accounts without interrupting trading activity
- Ability to manage an unlimited quantity of multi-currency accounts via one master trading platform selected by the manager
- Choice of base currency for the trader’s platform
- Immediate trade allocation between managed accounts
- Performance fee calculation functionality
- Ability to block trading facilities for particular managed accounts
- Interactive functionality to accept/decline new managed accounts