Trade-in forex with the help of Siby varghese
Percentage allocation management module popularly known as PAMM account is a way of earning money from forex trading. It is one of the most effective and less risky ways of earning money. A trader can also trade through PAMM account in an automated mode. It is an application that helps to trade in foreign exchange market with less risk. PAMM account is used for pooling money for trade. This helps the account manager to trade in large volumes. Thus, increasing the profitability ratio. As the manager makes successful trades they attract more and more investors.
The major participants in a PAMM account trading are the investor, trader and the broker. So if you are interested in trading in forex market but you lack the trading skills, you can trade through PAMM accounts. The investor here entrusts their money to the account managers. The PAMM account managers are professional traders who with years of experience managing people’s capital. Siby pamm is one of the popular PAMM account platforms that help to trade in currency market.
Pros of PAMM account
- It is the most beneficial way of investing money in forex if you are new to trading.
- The profitable trader not only earns money through their own investment but also from other investor’s funds.
- The PAMM manager cannot withdraw money from an investor’s capital. Hence, there is no risk of theft.
- The PAMM broker acts as the intermediary between the investor and the account manager. Thus, giving the details of the past performances of the account manager.
- The process of selecting a PAMM manager becomes easy of the ratings and feedbacks provided by the PAMM broker.
- It is easy to manage. The investor after depositing the money in the account can allocate them among different PAMM managers.
- Allocation of capital amount to several PAMM managers diversifies the risk.
Cons of PAMM account
- If the broker doesn’t allow the investor to direct a loss limit the investor can lose the entire capital amount.
- The investors are not allowed to study the trading manner of PAMM managers.
- The PAMM managers charge a fee which may range between 20% to 50% of the profit.
- The investor does not have a say in the trading process i.e.; the investor does not have any influence on the course of the trade.
- The trade comes with high risks as the past performances of the PAMM managers do not guarantee future profits.