Everybody know that standard PAMM technology has solved the task on removal of non-trading risks from the relationship between the Managing trader and the Investors. But the weak point of this technology is that the risk and losses aroused as the result of unsuccessful trade bears solely the investor. The managing trader gets the profit in case of the successful trade, but does not bear any risks in case of unsuccessful trade. Such situation is not satisfactory for the most part of investors that are requiring that the managing traders take part in the risks allocation the same way as they are taking part in the profit sharing.
But even if the Managing trader is ready to work on such conditions, the system, that provides the automatic fulfillment of such agreements, was not available till now – our Company have developed PAMM 2.0 technology, it provides the unique possibility of risks allocation between Managing trader and Investor. The guarantee of obligations fulfillment is the equity of the Managing trader.
How does it work?
The Managing trader has the opportunity to set in the Offer the responsibility level that is sufficient for him, for example, 50%. It means that the investor puts in risk only half of the assets that he transfers to the PAMM account of this Managing trader. For example, if the investor places to the PAMM account 5000 American dollars, then to loose in the result of unsuccessful trade he cannot more than 2500, and the rest 2500 he will get back at any result of the trading. It is guaranteed by the managing trader equity in the mentioned in Offer amounts in case of the financial losses. Amount of the investments, that the managing trader can accept, is calculated in such a way, that the managing trader equity cannot be less than the amount, that may be required in case of the the obligations fulfillment on the customer losses compensation.
This is how risks allocation indicated in the offer are guaranteed by the managing trader equity.
What are the investor’s benefits?
Investor receives the opportunity to choose comfortable for him risk level and the guarantee that this level will not be exceeded.
Risking by only part of the assets, investor gets profit from the entire sum that has been invested.
What are the Managing trader benefits?
The managing trader, who is sure in his trading strategy, gets the opportunity of attracting of the significant funds: investors, knowing that risks are limited, will be ready to invest much bigger amounts, then on conditions of 100% risk on the investor.
The managing trader, that takes part in the risks allocation, has much more trust among the investors, because he is ready to be responsible for results of trading his own assets. The managing trader, by taking part in the risks allocation, can expect much bigger rate of return, than in case of 100% risk for the investor.