FX traders have typically used, and continue to use today. Other financial asset classes such as stocks, bonds, commodities, futures or options — will rarely be etoro forex demo account within PAMM, LAMM or MAM accounts, although there are always exceptions.
Technically, you are able to use any financial instrument in whichever configuration you please — as long as its economically viable of course. Let’s go through each one to see which one could be right for you. Combing through the various offers being made is a key requirement, and checking past history of results is critical. The account manager’s trading activity including all profits and losses are allocated between managed accounts according to the same ratio.
Currency trading strategies tend to achieve profitability within very narrow margins amidst often volatile market conditions which makes PAMM systems a great tool for distributing risk among a larger group of investors and enabling a greater tolerance for short-term volatility. Supposing our PAMM manager had five clients. LAMM is a less sophisticated version of PAMM or MAM by crudely replicating trading positions without considering underlying account size. Regulating leverage and other risk-management features across sub-accounts provides more flexibility and choice within speculative markets — this is a double-edged sword and can be as destructive as it can be profit generative.