PAMM Manager FAQs

A PAMM Account Manager is a ForexTime client and an experienced Forex trader who manages the funds of other ForexTime clients on the innovative PAMM Account. Investors profit from the knowledge and experience of a successful trader and Managers benefit by receiving compensation for effective money management. A larger investment pool also provides managers a wider scope and more flexibility in their trading.

How to Create a PAMM Account

1. Log in to myForexTime.
2. Make a deposit to your transitory account greater than or equal to the minimum deposit.
3. Go to the "PAMM Managers" tab and click the “Create a PAMM Account” icon.
4. Fill out the required fields. Read and agree to the Regulatory Documents and click “Open Account”.
5. Check your email. Your registration information will be sent to your registered email address.

Attention:
Creating a PAMM Account involves the following steps:

1. Create your PAMM Account. Choose your account currency and open the account.
2. Activate the PAMM Account. Your PAMM Account may be activated immediately or you can wait until later if it is more convenient for you. To activate the account, simply specify the Manager’s Capital and make an initial deposit to your PAMM Account.
3. Choose which type of PAMM Account you would like. It may be either "Public" or "Private". PAMM Accounts are “Private” by default, but may be changed to “Public” at any time by the Manager.

The Manager's Capital is the Manager's investment in their own PAMM Account. It serves as a safeguard for the interests of investors. The Manager's own funds are also at risk if he is having an unsuccessful trading period.

Here's how it works:

Let's suppose that a manager creates a PAMM Account with the Manager's Capital set at 3,000 USD.

At the end of the trading interval, the balance of Manager's Managed Account rises to 3,500 USD.

The Manager chooses to increase the Manager's Capital by 250 USD. The remaining 250 USD will remain on the PAMM Account as the Manager's private investment (not part of the Manager's Capital) in the PAMM Account.

To change the Manager’s Capital:

1. Log in to myForexTime.
2. Click on the "PAMM Managers" tab and go to “My PAMM Accounts”. Select your account.
3. In the window of your Manager's Managed Account, click “Change Manager's Capital".
4. Enter the new value for the Manager’s Capital. Read and agree to the conditions and click “Change”.

The Manager can use the "Automatically Increase Manager’s Capital" function to increase the Manager’s Capital automatically when there is a gain on the account. To activate this function, find “Auto-Increase Manager’s Capital” in the Manager’s Managed Account window.

Attention:
The Manager's Capital can only be increased (never decreased), The balance of the Manager's Managed Account must remain higher than the designated value for the Manager’s Capital (Managers can increase their balance either by earning a profit trading or by making a deposit to their Managed Account).

The Request Planner allows the Manager to set the time(s) at which deposit / withdrawal requests will be executed. This may be any time within a 24-hour period.

In the Request Planner, the Manager can change:

• The type of rollover (active or idle)
• "Threshold": the amount of time before the Rollover when requests will still be accepted (if the threshold is 10 minutes, requests will still be accepted up until 10 minutes before the rollover)
• Whether or not to be notified by SMS about deposit / withdrawal requests on their PAMM Account

To find the Manager's Request Planner, click the "PAMM Managers" tab in myForexTime and go to "My PAMM Accounts". Select the "Requests" icon.

When a deposit / withdrawal request is submitted, the time of the next Active Rollover will be recorded and the request will be processed at that time, regardless of changes made in the Request Planner.

Attention:
By default, PAMM Accounts are set up to have an Active Rollover take place every hour with a threshold of 10 minutes (based on the server time, CET). You can change the number and type, as well as the threshold of rollovers in the Request Planner. You must have at least one active rollover every 24 hours.

Before you can activate the Manager's Proposal, we will need to verify the information you entered during myForexTime registration. If you have already opened another PAMM Account (using the same myForexTime Number), you will not be required to do this a second time.

To have your personal information verified by us, send a signed copy of your application and a copy of your passport / ID (used during registration) to pamm@forextime.com.

Fill out an application form in any of the following languages:

• English
• Russian
• Spanish
• French
• Chinese
• German

Attention:
If the application is filled in incorrectly or the copy of your passport is illegible, ForexTime may choose not to review your application.

When creating a Proposal, the Manager may set an "undisclosed period", which establishes a delay for viewing information about the trading on a PAMM Account. For instance, if a Manager sets the Undisclosed Period at "1 Day", investors in the PAMM Account will need to wait one day to view the current information about trading on the account. This system is designed to protect the Manager's trades from being copied.

The Manager may also choose not to establish a delay period or to never disclose their trading statement to investors by choosing “Always”.

Attention:
Investors can always view all of a Manager's deposits, withdrawals and transfers without a delay.

The Manager must keep track of the volume of open positions on their PAMM Account and make adjustments when deposits and withdrawals are made. Below are several examples of adjustments made on Managed Accounts.

Example:

A PAMM Account consists of two Managed Accounts and the Manager’s Managed Account. The PAMM Account equity is 10,000 USD.

PAMM Account

3,000 USD

6,000 USD

1,000 USD

Manager

Investor 1

Investor 2

The Manager opens a Buy position on EUR/USD: Volume: 4 lots, Price: 1.29000.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

Let's take a look at what happens to this position when:

1: The Balance Remains Unchanged

Before the Rollover, the price drops to 1.28800, resulting in a proportionally distributed loss of 800 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

After the Rollover, the price rises to 1.29300, resulting in a proportionally distributed profit of 2,000 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

At the Rollover: Price: 1.29300 PAMM Account Profits: +$2,000 Manager: +$600 Investor 1: +$200 Investor 2: +$1,200

2: A Deposit Is Made

At the Rollover, the price falls to 1.28800, resulting in a proportionally distributed loss of 800 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

A third investor adds a Managed Account to the PAMM Account. Their initial investment is 5,000 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

Investor 3: Deposit: $5,000

At the Rollover, the Manager must take this new investment into account and adjust the volume of open positions on the account. Since funds were deposited, the Manager will need to open new positions. The amount that needs to be added can be calculated as follows:

(SumInv / Equity) X Lots

Where:

• SumInv = Amount of new investments
• Equity = PAMM Account equity at rollover
• Lots = Volume of open positions

In our example: (5,000 / 9,200) X 4 = 2.16

This means that in order to adjust the trading positions, the Manager should buy 2.16 lots on EUR/USD. Thus, the Manager opens the following additional position:
BUY - EUR/USD 2.16 1.28800

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

Investor 3: Deposit: $5,000

Volume Adjustment:

BUY EUR/USD Volume 4 lots Price: 1.29000

+ BUY EUR/USD Volume 2.16 lots Price: 1.28800

After the Rollover, the price rises to 1.29300, resulting in a proportionally distributed profit of 3,080 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

Investor 3: Deposit: $5,000

Volume Adjustment:

BUY EUR/USD Volume 4 lots Price: 1.29000

+ BUY EUR/USD Volume 2.16 lots Price: 1.28800

At the Rollover: Price: 1.29300 PAMM Account Profits: +$3,080 Manager: +$600 Investor 1: +$200 Investor 2: +$1,200 Investor 3: +$1,080

Please keep in mind that the trading results of investors will not be affected when positions are adjusted after funds have been deposited.

3: Funds Are Withdrawn

At the Rollover, the price falls to 1.28800, resulting in a proportionally distributed loss of 800 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

The Manager is notified before the next Rollover that an investor has withdrawn all of their funds (5,520 USD) from the PAMM Account.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

Investor 2 Withdrawal: $5,520

During the next Rollover, the Manager must make adjustments to their trading positions, taking the withdrawal into account. Since funds were withdrawn, the Manager will need to reduce the volume of open positions on the PAMM Account. The required change in volume can be calculated as follows:

(OutInv / Equity) X Lots

• OutInv = Amount withdrawn
• Equity = PAMM Account equity at rollover
• Lots = Volume of open positions

In our example: (5,520 / 9,200) X 4 = 2.4

This means that the Manager will need to close 2.4 lots on EUR/USD. The remaining open position will be: BUY - EUR/USD 1.6 1.28800.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

Investor 2 Withdrawal: $5,520

Volume Adjustment:

BUY EUR/USD Volume 4 lots Price: 1.29000

+ BUY EUR/USD Volume 1.6 lots Price: 1.28800

After the Rollover, the price rises to 1.29300, resulting in a proportionally distributed profit of 800 USD.

12:00

15:00

18:00

21:00

00:00

03:00

1.29300

1.29200

1.29100

1.29000

1.28900

1.28800

Position Opened: BUY EUR/USD Volume: 4 Lots Price: 1.29000

At the Rollover: Price: 1.28800 PAMM Account Losses: -$800 Manager: -$240 Investor 1: -$80 Investor 2: -$480

Investor 2 Withdrawal: $5,520

Volume Adjustment:

BUY EUR/USD Volume 4 lots Price: 1.29000

+ BUY EUR/USD Volume 1.6 lots Price: 1.28800

At the Rollover: Price: 1.29300 PAMM Account Profits: +$800 Manager: +$600 Investor 1: +$200

The withdrawal and the Manager's adjustment of open positions will have no impact on the trading results of investors.

If several deposit / withdrawal requests must be processed during the same Rollover, the Manager can adjust the volume of his open positions based on the total amount deposited / withdrawn. They will not be required to make adjustments for each individual deposit / withdrawal.