PAMM stands for "Percentage Allocation Management Module." It is a trading and investment system used primarily in the foreign exchange (forex) and other financial markets. PAMM accounts allow experienced traders (referred to as Money Managers) to manage multiple investor accounts, each with its own proportionate share of the overall capital in a single trading account.
PAMM stands for Percentage Allocation Money Management. This unique kind of trading setup allows investors to allocate funds to a qualified trader or money manager they choose who in turn manage these pooled funds across multiple trading accounts.
With these accounts, investors benefit from profits with minimal involvement. However, PAMM accounts also carry the risks of capital loss, based on a money manager's performance.
A PAMM account is a type of investment account where an investor allows a professional trader or manager to manage their funds on their behalf. The investor's funds are pooled together with other investors' funds, and the manager makes trades on behalf of the entire pool.
Forex PAMM vs Social Trading : Social trading is following the trading activities of a successful trader. The main difference from PAMM is that investors don't transfer their money to the managers' accounts. An investor just copies a trader so that his/her every single trade is automatically executed on the investor's account.