PAMM, short for Cento Allocation Management Module and MAM, Multi Account Manager, make it easy for Fund Managers to carry out forex trades and transfer them to trading accounts. A fund manager generally trades on behalf of its investors. Without PAMM or MAM, it would be quite difficult for a forex manager to replicate his skills in real time. PAMM and MAM are modules in forex trading that allow access to advanced features for managers of forex institutions.
In this article we will look at the details of forex PAMM and MAM.
Multi Account Manager, also known as MAM, integrates as a plugin with the MetaTrade platform. By using MAM, a forex fund manager can track his trades across various managed forex accounts with just one click. This works regardless of the craft that is being executed, the work of a manual or expert advisor. When a transaction is executed on the teacher’s account, MAM executes the same across all received accounts in real time. . MAM offers great benefits for the forex fund manager that also automatically includes the launch of the fund manager’s money to manage forex managed accounts.
There are different ways in which the quantity or lot size is defined for each of the managed accounts when the device is used. LAMM and PAMM are commonly referred to as aspects that determine the size of the lot and to which system it should be applied.
What is the Lot Allocation Management Module?
Under the lot allocation management module, the client or managed account is traded using the same lot size as the account size regardless of the account size for this forex account owner. LAMM is ideal when managed accounts have the same amount of money as the manager. The problem arises when the size of the main traffic drops below. This greatly increases the risk and uses greater leverage. For these things I prefer using pamm.
What is a Management System Management?
PAMM or Sentio Destination Management Module calls the problem proposed by LAMM. A PAMM distributes the profits and losses incurred by the main trading account to all managed forex accounts. The size of the distribution is equal to the size of the account being handled and does not take into account the size of the lot used in the transaction.
Let’s take this example where the manager’s account size is $5000 and he managed two accounts A and B having capital of $2,000 and $3,000 respectively. The combined amount in this PAMM portfolio is $10,000.
According to the manager’s distribution plan, it is 50 percent, A to 20 percent and B to 30 percent. From this percentage allocation of profits and losses are applied to the narrative. So when there is a $1,000 profit, the manager gets $500, A gets $200, B gets $300. The same applies if the loss is $1,000. This is a very simple illustration of how Forex PAMM works.
What are the benefits of using MAM and PAMM?
Multi Account Manager and PAMM makes it easy for the forex money manager to focus on the core activity, which is trading. The MAM and PAMM module gives forex account managers access to their portfolio in real time, as they can watch trades being executed in a live environment. MAM module is used by forex money managers and helps them to track trades, investments, portfolio management
