In this method, each investor is given a specific amount of the trade in fixed units (lots), rather than percentages or balance. The total number of lots must equal the size of the master trade.
How it works:
- The PAMM manager sets a fixed number of lots for each investor.
- The sum of the fixed lot parameter of all the active sub-accounts must match the Master trade size.
- If the total of the fixed lot of the sub-account does not match with Master trade size, the investor may not get the lot allocation or may not get the correct fixed lot which is assigned to him.
- If an investor does not have a fixed lot assigned, that investor will not receive an allocation of the
trade. - If none of the investors have assigned any fixed lot, the trade will remain unassigned.
Formula:
Client's Trade Size = (Client's Fixed Amount / Master's Trade Amount) × Master's Trade Size
Client's Trade Size = (Client's Fixed Amount / Master's Trade Amount) × Master's Trade Size
Example: The master trader makes a trade of 0.45 lots.
- Investor 1 gets 0.02 lots.
- Investor 2 gets 0.03 lots.
- Investor 3 gets 0.40 lots.
Each investor gets the exact amount of lots assigned to them.