PAMM (Percentage Allocation Management Module) is an investment system that allows investors to entrust their funds to professional money managers for trading.
- The PAMM Manager executes trades on behalf of investors.
- PAMM Investors share in profits and losses proportionally according to their investment.
How Does PAMM Work?
- Performance Fee:
- The PAMM manager charges a percentage of profits earned from trading on behalf of investors.
- No performance fee is charged if the account incurs a loss.
- Profit and Loss Sharing:
- Profits or losses from trades are distributed proportionally to all investors at the end of each trading period.
- Trading Period:
- Duration can vary based on the PAMM manager’s strategy: days, weeks, months, calendar months, or rollover days.
This system allows investors to benefit from professional trading while PAMM managers are incentivized to perform well.
For more details, please refer to the official Ohio Markets website.