At INGOT, we support the PAMM system (Percentage Allocation Management Module) which is a special set of trading accounts used by money managers to manage their accounts. The PAMM system enables money managers to conduct and manage their accounts more easily and quickly.
This program allows the money managers to divide their transactions on the traders’ accounts according to the liquidity of each account.*
To enjoy managing multiple accounts through one software with INGOT Brokers, please contact us at email@example.com to design the program according to your needs.
* The regular distribution of positions as understood by the concept of The PAMM system (Percentage Allocation Management Module) is that transactions are divided according to each account’s current equity. However, this disclosure is to further explain certain restraints of the subdivision process that are caused by the platforms’ configurations which might effect the sub-accounts.
Taking into consideration that the minimum number of lots to be traded in one transaction is 0.01 lots (and in some cases 0.1), the PAMM system will not be able to proportionally divide a smaller percentage of that position taken by the manager among the accounts, especially if one of the underlying account’s equity represents a percentage that falls below or near 1% of the total’s PAMM account equity for that position. The system cannot allocate anything less than 0.1 of a lot and hence will automatically distribute that client the minimum of 0.01 lot.
Therefore, Managers should bear in mind that the smallest portion that can be allocated to an account is 0.01 lot of the main position and in case their client’s equities are disproportionate, this will reflect in the smaller equity accounts bearing higher risks than the higher equity accounts and putting them at risk of liquidation in case of a market movement against the respective accounts. The PAMM account's margin level does not accurately represent the margin levels of the sub-accounts. Managers of the PAMM account should always keep an eye on the sub-accounts' margin level. Also, the Manager has to keep in mind about the timing of each entry of the sub accounts among other factors.