- Member of HF Markets Group
The HFM PAMM Program allows Fund Managers to trade with the funds of multiple PAMM Investor Accounts for a pre-agreed Success Fee (%). Profits and losses made on the PAMM Manager’s Account are automatically allocated to each Investor’s Account based on the amount they invested.
Let’s look at an example to see the Profit/ Loss Allocation method in action:
The PAMM Manager and Investors are all invested in the Manager’s account. Their shares of the total investment and therefore their potential share of any profit/ losses are based on the amount of equity they invest.
Joins with investment
of $2000 which equals 40%
of the PAMM account
Joins with investment of $1000
which equals 20% of the
PAMM account
Joins with investment of $500 which
equals 10% of the PAMM account
Opens PAMM account
from myHF with
initial investment of $1500
If a Manager is in profit when positions on the PAMM Manager account are closed and the account balance increases, the profit will be distributed between all Investors in the account based on their participation.
| $2000 | + | $1200 |
| Investment | ||
| $1000 | + | $600 |
| Investment | Profit | |
| $500 | + | $300 |
| Investment | Profit | |
| $1500 | + | $900 |
| Investment | Profit | |
Based on the Manager’s Offer, Investors are obligated to pay a Success Fee to the PAMM Manager for his positive performance.
| Investment | $1500 |
| Profit | +$900 |
| SUCC. FEE | +$315 | (Success Fee received)
| WITHDRAWING | $2715 |
| Investment | $1000 |
| Profit | +$600 |
| SUCC. FEE | -$90 |
| WITHDRAWING | $1765 |
| Investment | $500 |
| Profit | +$300 |
| SUCC. FEE | -$45 |
| WITHDRAWING | $755 |
| Investment | $2000 |
| Profit | +$1200 |
| SUCC. FEE | -$180 |
| WITHDRAWING | $3020 |
The Manager Account controls the above three Sub Accounts. Therefore, the total equity in the Manager Account is the sum of equities in the Sub Accounts; in the above example $ 6,000. Fund Manager places a trade of 1 Standard Lot. At this point no positions are placed in any of the 3 Sub Accounts.
Manager Account then closes the trade with a profit of $ 6,000. At this point the profit is automatically allocated to the Sub Accounts.
Sub 1 will be allocated 1/6th of the profits ($1,000), Sub 2 will be allocated 2/6th ($2,000) and Sub 3 will be allocated 3/6th ($3,000).
Legal: HF Markets (SV) Ltd is incorporated in St. Vincent & the Grenadines as an International Business Company with registration number 22747 IBC 2015.
Risk Warning: Trading Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice. Please read the full Risk Disclosure.
HFM does not offer services to residents of certain jurisdictions, including the USA, Canada, Sudan, Syria, Iran, North Korea and others.
