PAMM Glossary


The PAMM service provided by Horseforex provides a convenient multi-account management service for investors and PAMM managers.


PAMM Manager

Money Manager or PAMM Manager

The role of the owner of the PAMM account registered in the PAMM system who uses his/her own money transferred from the Personal account and/or the Investor’s funds to trade in MT4/MT5 with an aim to generate profits.

Personal account (of the Money Manager)

The MT4/MT5 account of the Money Manager which is used to register his/her PAMM accounts and login in the web cabinet. Trading activities performed in the Personal account in MT4/MT5 do not affect any of the Money Manager’s PAMM accounts.

PAMM account

The MT4/MT5 account registered within the PAMM system where all trading activity is performed. It is created and used by the Money Manager for trading. Investors transfer their funds to such accounts as Investment.One Money Manager can register several PAMM accounts in the PAMM system. The Money Manager shall use his/her Personal account credentialsto login in the web cabinet containing data on all his/her PAMM accounts created.

Offer

The list of conditions proposed by the Money Manager to an Investor in order for the latter to join the Money Manager’s PAMM account. It usually includes the trading interval and different fees to be paid by the Investor as described in the present document.

Rollover

An act to synchronize the PAMM and the MT4 data. It updates account’s Equity, PnLs, available requests, etc. It also adjusts the balance of the MT4/MT5 account in the case of any inconsistencies with the PAMM data. Confirmed requests will be transacted during rollover. Default rollover interval is 1h.

Performance fee definition

The profit share that the investor pays to the money manager in accordance with the relevant proportion when making a profit. The profit share that the money manager receives from the investor account is transferred to the fund manager's own account. Performance fees will be paid to the money manager upon completion of the transaction to prevent investors from withdrawing funds in advance. If the investor's account has a loss during the current trading period, there is no need to pay the money manager. These losses will be transferred to the next trading period, and the money manager must make up for these losses in order to receive performance fees. Performance fees may depend on the total amount of funds or the rate of return for each investor.

Performance fee calculation mode

There are two calculation modes for performance fees, based on earnings or based on the net worth of investors. You can set a single-level performance fee, or you can set a multi-level performance fee.

Performance rate example 1 based on yield

When the trading period is the total period and the time interval (1 hour) is the time-weighted rate of the sub-period less than 10%, the performance fee paid to the money manager is 0%. Time-weighted yield >=10%, <20%, performance fee is 20%. When the rate of return is >=40%, the performance fee is 50%.

Performance Rate Example 2 is based on investor net worth

When the investor's net investment amount is less than 1000 USD, the performance fee is 50%. The net value is 40% between 1000USD and 5000USD; the net value is 30% between 5000USD and 10000USD; when the net value is above 10000 USD, the performance fee is 15%.

Investor

The role of the MT4/MT5 trader who invested his/her own funds (from his/her MT4/MT5 account) in a particular Money Manager’s PAMM account based on the Offer and expects that the Money Manager’s trading activity will generate profit from his/her Investment.
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