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.
- The participant’s share is 20%.
- 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.
Show the answer and explanation
200 USD
800 × 0.25 = 200 USD.
Accounts, copying and programs
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Read the fuller explanation
Related terms
Sources and documentation
- FCA: copy-trading models
Copying-model distinctions and the relevant scope of UK regulation.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.