Many Account Managers allow traders to handle multiple accounts through one main account. PAMM Application is commonly used by Money Managers and IBs.
It allocates master trades proportionally to the sub accounts by using various allocation methods such as equity, PL or balance.
The most popular allocation method among trades is equity. It allocates master trades to the sub accounts based on the amount of their equity.
EQUITY ALLOCATION METHOD:
Trader opens 1 lot on EURUSD and equity status was 10k, 20k, 30k, 15k, and 25k in each sub account. PAMM allocates the 1lot proportionally to each sub account as 0.1, 0.2, 0.3, 0.15 and 0.25. This is the main reason why equity method is mostly used, because it is solid and easy to implement.
There are various advantages to trading forex with a PAMM application. One of the most unique advantages is slippage interception. Since the sub accounts only mirror the master account pricing, it is impossible to see price discrepancies. It is guaranteed that all sub trades will be entered from the master trade price.
We believe this is a feature that other similar applications simply cannot offer. Of course, this is not the only advantage.
ADVANTAGES AND FEATURES:
Direct market liquidity for Master Accounts
Slippage Interception between Sub Accounts
Full view over Master and Sub Trades
Various Reporting Options
Easy EA Implementation
Full control over client accounts through one account
All trade types are allowed