A trader has USD 10,000 in his account. Three investors decided to invest USD 1,000, USD 2,000, and USD 7,000 respectively.
Consequently, funding the trading account with USD 10,000 and receiving investments, the managing trader gets the same share in his account as investors. All the shares are directly proportional to investments of all the PAMM account users (managing trader and investors) in the total balance of the account.
If in future a new investor joins them and decides to invest USD 5,000 in this account, his or her share will be 5,000 / (20,000 + 5,000) = 20%. The shares of other members will also change because of the newly invested funds, but will not diminish at recalculation.
All operations mentioned above are processed automatically by the company. At any time the investor may request withdrawal of the investment from the PAMM account together with the profit. A part of the profit is paid to the trader as a commission after the investment withdrawal is processed. The commission is set by the managing trader in the PAMM account settings and is available to all potential investors.