PAMM (Percentage Allocation Management Module), MAM (Multi-Account Manager), and LAMM (Lot Allocation Management Module) are all investment solutions used in the financial industry to manage multiple trading accounts. While they share similarities, they have distinct differences:
PAMM (Percentage Allocation Management Module) | In PAMM, a trader manages one account with contributions from many investors. Profits and losses are divided based on the investors' percentages.
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MAM (Multi-Account Manager) | MAM allows a trader to manage multiple accounts as a single master account. All linked accounts receive the same trades simultaneously.
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LAMM (Lot Allocation Management Module) | LAMM is like PAMM but divides profits and losses based on the lot sizes traded, not percentages. Investors can choose their preferred lot size. |
In summary, the key differences between these systems lie in how they allocate profits and losses to investors. PAMM operates based on percentage allocation, MAM focuses on lot size allocation, and LAMM combines elements of both, offering investors the choice of lot size allocation while distributing results accordingly.