A PAMM account shares results by percentage of the pool. Your funds buy a share of one master trading account, and whatever it gains or loses is applied to your share at rollover. Fees come off at the end of the trading interval, which is why two investors in one pool end up with different net figures.

This guide works through the arithmetic with a single pool followed across a gain, a loss and a withdrawal. For the model itself, see what is a PAMM account, and the product is set out on the ThinkMarkets PAMM money manager page.

How are profits and losses shared in a PAMM account?

You hold a percentage of the master trading account rather than any individual position. When the manager trades, the result belongs to the account as a whole, and the system works out each participant's slice of it.

The money manager's owner account counts as the first participant, so it appears in every allocation alongside the investors, whether or not the manager has deposited anything of their own.

A worked example of PAMM profit sharing

Take a pool of USD 100,000 made up of four participants. All figures here are illustrative.

The pool, before any trading

Four participants, USD 100,000 in total

Investor 1

40,000

Investor 2

25,000

Money manager

20,000

Investor 3

15,000

Bar length is to scale, 0 to USD 45,000. Illustrative figures only. Not a ThinkMarkets fee schedule and not an indication of future results.

Suppose the manager trades over an interval and the master account finishes USD 5,000 up, a gross return of 5 per cent.

A USD 5,000 profit, allocated

Each participant gains 5 per cent before fees, the same as the pool

Participant	Share	Funds	Gross profit allocated
Money manager	20 per cent	USD 20,000	USD 1,000
Investor 1	40 per cent	USD 40,000	USD 2,000
Investor 2	25 per cent	USD 25,000	USD 1,250
Investor 3	15 per cent	USD 15,000	USD 750

Illustrative figures only. Not a ThinkMarkets fee schedule and not an indication of future results.

Every participant gained 5 per cent before fees. The amounts differ only because the shares differ, which is the whole mechanism in one line.

What happens when the pool loses?

Exactly the same arithmetic, in the other direction. This is the part worth being clear about before you allocate rather than after.

The same pool, a USD 5,000 loss

Identical arithmetic, opposite direction

Participant	Share	Gain of USD 5,000	Loss of USD 5,000
Money manager	20 per cent	USD 1,000	USD 1,000 borne
Investor 1	40 per cent	USD 2,000	USD 2,000 borne
Investor 2	25 per cent	USD 1,250	USD 1,250 borne
Investor 3	15 per cent	USD 750	USD 750 borne

Illustrative figures only. Not a ThinkMarkets fee schedule and not an indication of future results.

Using the same pool, a USD 5,000 loss means Investor 1 bears USD 2,000 of it, Investor 2 bears USD 1,250 and Investor 3 bears USD 750. Nobody is sheltered and nothing is capped.

If the master account reaches its stop-out level, positions close there and the realised losses are distributed across the shares in the same proportional way, all at once. The wider picture is in PAMM account risks.

How do fees change the net result?

Gross allocation is proportional. Net results are not, and the reason is that performance fees are equity based.

Continuing the profitable example, assume a tiered performance fee of 40 per cent below USD 10,000 of equity and 30 per cent at USD 10,000 and above. All three investors sit above the threshold, so 30 per cent applies to each.

The same profit, after the performance fee

Fees are charged from the investor to the money manager

Participant	Gross profit	Performance fee at 30 per cent	Net to investor
Investor 1	USD 2,000	USD 600	USD 1,400
Investor 2	USD 1,250	USD 375	USD 875
Investor 3	USD 750	USD 225	USD 525

Illustrative figures only. Not a ThinkMarkets fee schedule and not an indication of future results.

The manager receives the USD 1,200 of performance fees on top of the USD 1,000 allocated to their own share. Had an investor's equity sat below the threshold, the 40 per cent rate would have applied and their net return would have been lower in percentage terms than the others, on an identical gross result. A management fee, where the offer includes one, comes off in addition. The calculations are in PAMM fees explained.

When does the allocation actually happen?

At rollover, not trade by trade. The system recalculates every share, applies the profit or loss to it, and processes any approved deposit and withdrawal requests, all in the same pass.

At ThinkMarkets rollover runs hourly by default, and a manager can trigger it manually within a frequency limit. The practical effect is that a PAMM balance moves in steps. Between two rollovers it sits still even while the manager has positions running, which is normal and not a fault.

Why does your share percentage change?

Because shares are recalculated whenever money enters or leaves the pool, and that includes other people's money.

Why your percentage can change when you have done nothing

Investor 2 adds USD 25,000. Nobody else deposits or withdraws

Participant	Funds	Share before	Share after
Money manager	USD 20,000	20 per cent	16 per cent
Investor 1	USD 40,000	40 per cent	32 per cent
Investor 2	USD 50,000	25 per cent	40 per cent
Investor 3	USD 15,000	15 per cent	12 per cent

Pool rises from USD 100,000 to USD 125,000. Every other participant's money is unchanged, but their slice of a larger pool is smaller. Illustrative figures only. Not a ThinkMarkets fee schedule and not an indication of future results.

If another participant deposits, your percentage falls even though your own balance has not moved. You hold the same amount of a larger pool. Withdrawals by others do the reverse. Nothing has been taken from you and nothing needs fixing.

When you confirm an investment of your own, the amount is reserved from your available balance while the manager approves it. The funds are not lost during that wait. They sit on hold until approval and the next rollover.

What happens if you withdraw with trades open?

Partial close by owned share applies. Rather than closing a whole position, the platform closes only the portion of each one that corresponds to your share.

The realised profit or loss on that portion is allocated in full to you, because your withdrawal is what triggered the closure. The remaining positions carry on for the rest of the pool, unaffected in percentage terms.

One consequence follows on fees. Leaving part way through a trading interval can trigger a pending performance fee, calculated only on the profit made for you during that interval, at the rate matching your equity. If the interval is at a loss, nothing is charged.

Frequently asked questions

How are profits divided in a PAMM account?

By percentage of the pool. Each investor's funds buy a share of the master trading account, and that share receives the same percentage of the account's result. A 25 per cent share receives 25 per cent of the profit, before fees are applied.

Do all PAMM investors get the same return?

Before fees, yes. Every share in the pool experiences the same percentage return over the same period. After fees results can differ, because performance fees are equity based and a manager can set tiers where a larger balance attracts a lower percentage.

What happens to my share when the pool loses money?

It falls by the same percentage as the pool. A 5 per cent fall in the master account is a 5 per cent fall in your share, and nothing caps how far that can go. If the account is stopped out, the realised losses are distributed across every share at once.

When is profit actually credited to my share?

At rollover, which runs hourly by default. Results are not applied trade by trade, so your balance updates in steps rather than moving continuously while positions are open.

Why has my PAMM share percentage changed?

Shares are recalculated whenever funds enter or leave the pool. If another participant deposits, your percentage falls even though your money is unchanged, because you now hold a slice of a larger pool. Withdrawals by others have the opposite effect.

Does the money manager's own money share in the result?

Yes, where they have deposited any. The manager's owner account is treated as the first participant in the pool and takes the same proportional result as everyone else. Depositing own funds is recommended but not required, so a manager may hold no share at all.

What happens if I withdraw while the manager has positions open?

Partial close by owned share applies. The platform closes only the portion of each open position matching your share of the pool, and the realised result on that portion is allocated in full to you. The remaining positions continue for the rest of the pool.