Principles of the system of PAMM-accounts

The basic block diagram illustrating the principle of operation

PAMM Account (from the English. PercentAllocationManagementModule, PAMM - Percentage distribution of the control module) — a specific mechanism of the trading account, technically simplifies the transfer of funds in the account in trust select a trusted manager for operations in the currency markets.

In simple words, the PAMM-system allows for a fair and transparent cooperation with the Investor Trader. Speaking of PAMM-services, it is impossible not to mention the three actors in the system.

The first and by far the most important participant is Investor . The investor's task is to vyboredvuh other participants. The investor assumes the risks and transfer the money to his personal account in Broker , and then orders the transfer of the management of Trader. And the broker is a guarantee of reliability of the relationship, eliminating the majority of non-commercial risks of investing in the currency market FOREX.

Forex (Forex, sometimes FX, from the English. FOReignEXchange - "foreign exchange") - the market of interbank currency exchange at market prices (the quote is formed without restrictions or fixed values). Currency market participants are banks, multinational companies, investment funds and currency speculators.

Forex market allows to exchange one currency for another at the best price at the time of the transaction. It can be fun, such as banks, who need to perform various exchange operations or multinational corporations, who are paid in one camp, and the salary they must pay to the other.

following stakeholders can be large investment funds or companies working for export / import and try to reduce risk (hedge) related to currency fluctuations. In addition, the market there are speculators who try to predict possible changes in the exchange rate and make money on it.

flip side PAMM - is, of course, Trader (speculator), who spent many years of his life on that to become an expert in the field of financial management and trading on FOREX.

Without exception, successful trader, no matter whether they are supporters of fundamental analysis or technical school of followers, in their trade, one way or another, guided by a specific set of rules, methods, and trading signals that point to the point of opening and closing positions. As well as the principles of risk management by adjusting the volume of the transaction (lotnost) and level limit losses (stop loss).

All these questions are regulated trading strategy trader, which allows him to receive income from the market FOREX. It is important to really work with professional traders complying with risk management and the rules of the trading system.

One of these trading systems and a system Trade-Bowl. Trade-Bowl - this is a team of professional traders and professionals, united by one goal - getting stable high returns with minimal risk.

And the word

"stable" plays the biggest role, because money once the market have much, it is enough to enter an order in any direction, and if you are lucky, a 50% You will get a good return ... almost everything is in roulette. However, to do this successfully, and for many years, this is really serious, you must have the knowledge, skills, abilities and experience that much important. In addition, for such work requires complete dedication and nerves of steel.

should say that the Forex market - is a highly risky market, as it does use the tool "marginal shoulder", allowing to receive interest-free credit for its operations on the security of its own funds. This is an opportunity for a significant increase in income, however, inappropriate risk management is likely a total loss of the deposit.

is why you should choose only those managers who have proven its worth and has been for many years a successful and stable trade without putting capital from investors to significant risks.

Depending on the aim, the trader, and then the investor choose trading strategies with different levels of risk. If the main purpose is to provide investor profits, then it's time to stop at the "aggressive" strategy, where the risks are high, but the yield is much higher.

If investor wants the opposite, first save, and then later increase it, then you should choose managers who trade "conservative". Both types of policies are fully supported by our team and are being implemented in the accounts: "Conservative" account - Trade-Bowl (ECNp20) , and "aggressive" — Trade-Bowl (ECNp40) .

There controversial view that if a trader really successful, then he does not need to take money from investors to management. However, this is not true, if you count what must have an initial capital of traders to 5 years to become a dollar millionaire, then the average rate of return of 50% per annum to start with 130 thousand dollars. Far not every man is a down payment.

Besides, what trader in the shower has plenty of "general" and to manage their own fund? Personal ambitions also exclude nelzya.Vot and teach that same trader in attracting investors. In the intersection of the two interests as a time and there is potential for collaboration and partnerships.

Traditionally there are two forms of such cooperation - either trust (control) or the type of asset management - PAMM . Learn more about the advantages and disadvantages of both methods can be from another article (link to article).

As already mentioned, there is some third party who is an intermediary between investors and traders that provides the mechanism for investment and guarantees the fulfillment of the conditions of the contract-offer.

usually offer governed by the following parameters: the period of investment, the profit share of the Investor / Trader, conditions for early termination of the relationship and the amount of the minimum payment.

mechanism PAMM accounts simplifies how the work of investors and of the trader. Broker is also very effective, as he gets his commission on the volume of transactions made Trader.

It should also be noted that since Broker is a kind of performance bond, by his choice, too, should, come responsibly, because the popularity of PAMM mind, recently began to appear much fraudulent schemes work, where cheating is in fact from a brokerage company. This is especially noticeable in the former Soviet space, where there are large gaps in the law.

So choose only reliable traders only from reliable brokers and working on strategy, consistent with achieving your goals. Successful, stable and most importantly your investment!