Compare the abbreviations:
PAMM (Percentage Allocation Management Module) - percentage distribution module. LAMM (Lot Allocation Management Module) - module redistribution lots. So different onitolko one word - «Lot», but just the word and defines the main difference in the systems. For a detailed discussion of differences systems made the comparison table:
Option PAMM LAMM
The basic principle of the system of the Units or the equity principle. Means many investors are going to single PAMM - account manager, shares distributed as a percentage (this is an analogue of mutual funds). Calculations investors and management system performs automatically. The calculation of the lot, its up proportionally.
Depositors are pouring their accounts to the master account manager, it automatically "computes" transactions on the account, specifying the required lot size , the possibility of the transaction based on the amount of money in the account of the depositor.
Trade Manager sells one account, where he sees the joint funds, including equity. Trade is the whole volume of the system distributes the results of their own on the basis of membership shares. Managing trades exclusively on the personal account and their money (as if investors do not have.) He may not know the amount of funds a joint attached to the master - the account. Copy of transactions and volume calculation system produces itself.
Deposit and withdrawal Vkladchikizayavlyayutsyana entry or withdrawal. These requests are performed in the time of rollover. Moreover, the level of the balance of the PAMM - account changes all the time, respectively, changing the value of the deposit in the presence of load open trades. Investors can attach / detach the investment account at any time. The concepts of "rollover" no. At the time of disconnection, transfer transactions in the depositor's account ends.
Distribution of results, depending on the offer, in proportion to shares during the last rollover for the trading period (usually at the end of the month), or rollover during closing managed account. At the end of the trading period, depending on the offer, which he joined contributor.
Control the number of transactions, the adjustment of the principles governing the administrator shall monitor the number of transactions, especially in moments of rollovers, because loading deposit account risks all the time.
Need to adjust the position in the input or output. Managing risk controls solely on his own account, he did not need to observe the input or output of the contributors.
Changes in position occurs.
Copy transactions in the accounts of depositors all transactions carried out the manager, distributed proportionally between the accounts. The system calculates the possibility of disclosing the proportional amount of the respective transactions in the account of the depositor. In case the amount in the account of the depositor is small, the transaction is not carried out.
The lowest amount of participation in the system. Here - $ 1.
For each PAMM minimum amount is set offer manager. Depends on the value of the account manager. When the amount is much less than the amount the manager, the transaction may not be broadcast on the account of the depositor.
Each control is the lowest amount of his offer.
* Rollover - a procedure performed when non-trade transactions on the account. For example, fixing the total sales, the calculation of compensation manager, refreshing all the information on the website of the company, working out proposals for deposit / withdrawal of funds and so on.
In every technology has advantages and disadvantages. The main drawback of the PAMM that the manager should always adjust the amount of positions for input or output means. For example, most of the accounts belonged to the largest contributor, he brought all private money, although there are available in the account from the big volume. In this case, the possibility of rapid margin call and violation of risk management.
In systems Lamma no such problem. It works only on managing your account, and it does not matter the number of managed accounts, which are attached to the master account. The system does the calculations for him. However, there is another problem.
There are restrictions on the least resources, otherwise, all transactions will be transmitted to the master account. For example, if the manager is working on the account 100K $, and the investor joins with $ 1, then this little lot Lamm system can not calculate. PAMM account is allowed to join only $ 1, with the appropriate offer manager.
To date, among the brokers are only three sites Lamm companies: 1) Akmos Trade 2) Teletrade 3) Grand Capital.
Currently PAMM system are widespread and popular. From my point of view, LAMM site easier to manage, PAMM platforms - most investors, due to the fact that the calculation is for small amounts and mass (not every investor can afford to invest tens of thousands of dollars).
In the end, I want to note that correlating the advantages and disadvantages of both systems, we can not say for sure that one of them is worse, and the other is better. Lamme and PAMM platform essentially perform the same function, namely exercise convenient interaction investors and managers on the market Forex . Site selection is determined by the specific control and specific investor based on their preferences. Some managers and investors are once both sites.