How PAMM Works?
Typically, when investors trade independently, they often encounter difficulties since their capital might be insufficient for a particular trading strategy. With PAMM, this hurdle is overcome by pooling funds from various investors, enough for any trading strategy. Investors can, in turn, receive a prorated profit from any investment strategy employed by the Investment Manager.
For the Investment Manager, PAMM enables them to pool sizeable funds from Investors and earn a performance fee. They also get to trade with a large capital than they would if they were to trade with their funds.
Typically, their profits are shared based on the investors’ contributed amount as a percentage of the PAMM account’s capital.