PAMM-account and how to invest in a PAMM-account?
The most progressive form of trust management are PAMM accounts. These are special systems that allow to automate the process of transferring funds to the management and distribution of profits and losses in proportion to the invested capital.
The funds are transferred to the managing trader who performs Forex trading with their help. He has no right to carry out with them any actions, except for attracting into transactions for the purpose of creating profit. The investor is the full owner of his capital, and the manager manages to trade from his PAMM-account, using his own funds, and transferred to him in the management of investors. The resulting profit is distributed in proportion to the amounts involved in the implementation of the trade operation. Losses can be borne entirely by the investor as part of his equity participation, or reduced by partially redistributing the risk to the managing trader.
The selection of a manager is carried out with the help of special ratings, which publish official data on the performance of each trader’s trade. Investors can distribute their capital over several PAMM accounts, thus diversifying their risks. The approach to such a division may have different benchmarks. The investment portfolio is formed primarily to minimize risks and must be balanced in such a way that the proportion of accounts with conservative trading methods overlaps some of the aggressive accounts. But it can also be diversified by differentiating the trading instruments used, profitability, rating of managers and other parameters. Recently, PAMM Indices are very popular. These are specially selected by experts and experts of PAMM-account brokers, which are ideally balanced with each other in order to maintain a stable and high income of investors.
PAMM accounts allow you to earn income without the direct participation of investors in trading, they are an effective way to increase capital. The risks of investors are leveled by the fact that not only their deposits, but also the funds of the manager themselves take part in trade transactions. In addition, investors have the opportunity to observe trading operations and even in some cases correct them by blocking transactions that they believe are undesirable.