Forex Managed Accounts-PAMM

Posted by Manuel M.
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Forex is a business that can be highly lucrative today. Thanks to the high leverage which you can choose, you do not need large amounts of money to invest.

However, high leverage can also lead to heavy losses. Therefore, it should be cautious and invest with conscience.

Professional traders have control of their emotions and a system that allows them to make a profit. They stand losses, but the benefits outweigh the losses. We need to follow a discipline, have a system and know specifically the forex market.

The great alternative for people who are not experts or traders who do not have enough experience in the field of forex are Accounts Managed by professional traders, who earn consistent profits over time.

The definition of a PAMM by Wikipedia is

"percent allocation management module, or PAMM, which may also be referred to as percent allocation money management, describes a software application used predominantly by foreign exchange market (forex) brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader's activity results (trades, profit and loss) are allocated between managed accounts according to the ratio."

The key issue is to be sure that the money deposited in that account will not be removed by a fraudulent trader. Luckily, there PAMM managed accounts that through a broker ensures that the trader only use the money invested to purchase and sale transactions in the forex market.

Financial markets are giving huge profits to traders who can benefit from both increases and decreases in the prices of currencies in the forex currency market, being a lucrative opportunity to obtain a high return, you can hardly get in a current account bank.

Take a look at this PAMM: