Forex glossary

PAMM account

PAMM is a mechanism allocating a manager's trading results proportionally to participants' funds under platform rules. It need not mean one pooled account or lack of trade visibility. Fees, withdrawal terms and required management permissions depend on agreement, structure and jurisdiction.

Illustrative example

How does it work in practice?

In a hypothetical PAMM arrangement, a participant's share is 20% and the allocated pool gains 500 USD. The participant receives 100 USD before fees; losses follow the assumed allocation rules as well.

A case to work through

Allocating a loss

Model: participant funds 2,000 USD out of a 10,000 USD pool; allocated loss 600 USD, no fees or flows.

  1. The participant’s share is 20%.
  2. Assigned loss is 600 × 0.20 = 120 USD, leaving 1,880 USD.

What follows? Also check withdrawal and fee provisions in the agreement.

Example boundary: This is a simple-proportion model, not a specific service’s terms.

A useful distinction

PAMM account / Copy trading

Copy trading replicates instructions; PAMM assigns results under an allocation rule.

Check your understanding

Calculate a proportional share of a modeled loss.

With a 25% share and an 800 USD pool loss, what loss is assigned?

Show the answer and explanation

200 USD

800 × 0.25 = 200 USD.

Accounts, copying and programs

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Sources and documentation

The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.

Read this term in Polish →

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