In essence, an offer is an agreement between the trader (manager) and the client, defining the terms of the transaction. Here you can draw an analogy with the bank agreement. In order to accept the Offer, both participants must be registered on the electronic platform of the intermediary, the broker who performs the control function for compliance with the terms of the agreement.
The main points of the offer:
- trading period. The minimum period for which to invest. The time lag in this case is equal to a week. That is, an investor can withdraw money only after a minimum of one trading period, the withdrawal of funds in the middle of a TP entails penalties;
- PAMM account view. Regular or semi-periodic accounts will be the basis for the transaction. The difference is that for ordinary accounts with the end of the trading period all open transactions are closed, whereas in the second case they can be transferred to the next period;
- trader’s commission. Percentage of income received by the trader;
- penalties. Their size is set, applies if the investor requests to withdraw the investments before the end of the trading period;
- stopout. The amount of money below which the trader should not fall. In other words, this is the boundary limit below which loss is not possible (at the request of the investor). When this limit is reached, the deals stop. Often this field of the offer remains empty, which means transactions are conducted as long as there is money in the account;
- minimum amount. The minimum amount that an investor must deposit into a PAMM-account in order to conclude an offer. During the execution of transactions, this limit may decrease due to unprofitable work, and if desired, the investor can add funds to the PAMM-account;
- transaction reporting. May be of two types. The first type provides the opportunity for the investor to see the result only at the end of the trading period. In the second case, the investor can at any time check the progress of the transaction from the moment of its opening;
- contact with the manager. This field is rarely used, because the broker communicates directly through its official website, on which participants registered before the start of the transaction.
We think now you have a little idea how a deal is made when investing in a PAMM account. If you understand everything, go ahead! We sincerely wish you good luck and will continue our publications in order to increase your level of knowledge in the Forex market!