Offer parameters
Discuss (0)View Page CodeHistory
Modified:6/3/2010(7:54:21 AM) by Olga
Categorized as:What you need to know about PAMM account
» Offer parameters
Languages:Русский
EditOffer parameters
Let Offer parameters be: My best offer: 30/5/10–6/4-10 000/1 000/100 .
Note: You can name your offer (optional).
1. Performance fee (0-100%).
30/5/10 – 6/4 – 10 000/1 000/100
A performance fee specifies the percent from the Investor’s profit, which the Manager gets when profit is distributed between the Manager and the Investor at the end of the Trading interval.
Example 1:
According to the Offer, the Manager will get 30% of the profit. Let’s assume the profit at the end of the Trading interval is 10 000 USD.
2. Management fee (0-100%)
30/5/10 – 6/4 - 10 000/1 000/100
A management fee is a certain percentage of the current Investor’s balance. It is calculated and transferred to the Manager on a daily basis. The management fee is displayed in percent per annum. So, the amount that is daily paid to the Manager is 260 times smaller (260 being the average number of trading days per year).
Example 2:
As of the current Rollover the Investor’s balance is 30 000 USD. The Management fee that will be transferred to the Manager in this rollover is:
As of the next rollover the Investor’s balance is 35 000 USD.
It will be transferred to the Manager’s account in this rollover.
3. Minimum performance constraint (0-100%)
30/5/10 – 6/4 - 10 000/1 000/100
A Minimum performance constraint is the percentage rate of return which has to be exceeded before the Manager gets his Performance Fee at the end of the Trading interval. The Performance fee will be calculated based on the profit made over the minimum performance constraint.
Example 3:
According to the Offer parameters the Manager wants to be paid a fee of 30% from the profit that exceeds the 10% profit made from the managed funds. Let’s say the managed funds are 10 000 USD and the Investor’s profit for the Trading interval is 50% or 5 000 USD.
where
The profit left to the Investor after the Manager’s Performance fee has been deducted is 5 000 - 1 200 = 3 800 USD.
4. Deposit Commission (0-100%)
30/5/10 – 6/4 - 10 000/1 000/100
Deposit commission is a certain percentage of the deposited Investor’s funds that will be transferred to a Manager’s account when a deposit request is executed.
Example 4:
An Investor deposits 10 000 USD.
So 10 000 - 600 = 9 400 USD is credited to the PAMM account. But the managed funds of the Investor still amount to 10 000 USD and the Performance fee will be paid only if the Investor’s balance at the end of the Trading interval exceeds 10 000 USD.
5. Early withdrawal penalty (0-100%)
30/5/10 – 6/4 - 10 000/1 000/100
Early withdrawal penalty is a certain percentage of the funds withdrawn by the Investor that is paid to the Manager’s account when an early withdrawal (a withdrawal before the end of the Trading interval) request is executed.
Example 5:
Let's suppose an Investor has accepted the Offer on 10.10.2009, Trading interval is a “Month”. The Investor makes an early withdrawal request on 10.20.2009. According to the Offer parameters the penalty is 4%.
As of the current Rollover, when the withdrawal request is processed, the Investor’s balance is 10 000 USD.
So, the amount of 10 000 - 400 = 9 600 USD will be transferred to the Investor’s account. And the amount of 400 USD will be transferred to the Manager’s account.
6. Initial investment
30/5/10 – 6/4 – 10 000/1 000/100
Initial investment is a minimum initial amount an Investor can deposit to a PAMM account.
Example 6:
An Investor decides to accept a Manager’s Offer. The minimum deposit amount in this offer is 10 000 USD. So on accepting the Manager’s Offer the Investor should make a deposit request of 10 000 USD or more.
7. Minimum top-up
30/5/10 – 6/4 – 10 000/1 000/100
Minimum top-up is a minimum amount that an Investor can add to the remaining Managed funds where the Investor’s balance is above zero.
Example 7:
An Investor has accepted a Manager’s Offer. In this Offer the minimum top-up is 1 000 USD. So if the Investor has a desire to deposit some extra funds he won’t be able to make a deposit request of less than 1 000 USD.
8. Minimum balance
30/5/10 – 6/4 – 10 000/1 000/100
Minimum balance is a minimum amount to be left on an Investor’s account after a withdrawal request is processed.
Example 8:
The Investor’s balance according to the Offer is 15 750 USD. The Minimum balance according to the Offer is 100 USD . So if the Investor makes a withdrawal request at the end of a Trading interval he won’t be able to withdraw an amount of 15 700 USD for example, as the remaining balance of the Investor would then be 15 750-15 700 = 50 USD, which is less than the minimum balance specified in the Offer (50< 100). In this case at the end of a Trading interval the Investor can withdraw the amount up to 15 650 USD or the whole amount (15 750 USD).
9. Trading interval
Trading interval — a time period, during which the Manager of a PAMM account trades to take profits and after which the Manager's Performance fee is calculated. The Trading interval is selected by the Manager on creating a Manager’s Offer and cannot be changed in the future, after the Offer is activated.
To view the end of Trading interval login to My FXOpen area and find the tables Managed Accounts, Offers.
Available Trading intervals:
• 4 weeks (28 days);
• 12 weeks (84 days).
 | Note! Trading interval starts from the date you have accepted the Manager's offer. |
10. Offer password (optional) — a password used to accept a Manager’s Offer. If a password is set up, only those who know this password can accept the Offer. This function will be helpful if you want to limit the number of Investors.