Example 1
A Managing Trader has $10000 in his account. Three investors decided to invest $1000, $2000 and $7000 in it respectively.
1) First investor funded $1000 and he would get an interest equal to 1000 / (total deposit) = 1000 / (10000 + 1000 + 2000 + 7000) = 1000 / 20000 = 5%.
2) Second investor funded $2000 and he would get an interest equal to 2000 / (total deposit) = 2000 / (10000 + 1000 + 2000 + 7000) = 2000 / 20000 = 10%.
3) Third investor funded $7000 and he would get an interest equal to 7000 / (total deposit) = 7000 / (10000 + 1000 + 2000 + 7000) = 7000 / 20000 = 35%.
4) The interest of the Managing Trader will be equal to 10000 / 20000 = 50%
Consequently, funding his trading account with $10000 and getting investment from traders, Managing Trader got the same interest in his account as Investors. All interests are directly proportional to investments of all participants (Managing Trader and Investors) in the total deposit of the account.
If furthermore, new Investor joins them and decides to invest $5000 in this account, his interest will be 5000 / (20000 + 5000) = 20%. Shares of other members will also change because of new invested funds, but will not reduce while absolute calculation.
Example 2
1) Managing Trader registers the account and replenishes it in amount of N dollars;
2) Managing Trader gets the first Investor who funds account with X dollars. Managing Trader starts trading;
3) Then new Investors come into the deal and each of them invests different amounts of money (from 1 to hundreds of thousands dollars). Each Investor gets the exact per cent from account which is due to him at the moment of investing;
4) Some Investors decide to return their invested funds fixing their profits in the account;
5) Other Investors continue keeping their interests in the trading account;
6) Trader withdraws a part of his interest.
All mentioned above operations are carried out in automatic mode arranged by the company. Any time Investor may request refund of his share from the Forex Managed Account (PAMM) together with the profit. A part of profit is paid to a Trader at the moment of Investor`s money refund as a payment for Managing Trader`s work. The percent of profit paid to Managing Trader is set by him in the settings of his Forex Managed Account (PAMM) and is available for all potential Investors.