Welcome to Forex Cave

- Forex Cave simply operates as a PAMM (Percentage Allocated Management

Module) Fund.

 - A PAMM Account is a type of investment account that basically allows

investors to pool their funds and have them managed by a professional trader or money manager via a regulated Forex Broker.

- With a PAMM Fund, profits and losses from the trading activities are proportionally distributed to the investors individual PAMM accounts based on their investment percentage.

- The main benefits of a PAMM account, is that there is potential for higher

returns and diversification of an investors financial portfolio.

- Another benefit is that managers earn fees based on the PAMM funds’

performance, incentivising them to deliver strong financial results.

- Also, with PAMM Accounts, investors have full transparency of their accounts and can monitor their trading account at all times.

- Investors can also withdraw their funds from their PAMM account at any time and the PAMM Fund has no access to the investors capital.

- To provide a more concrete example of a PAMM fund works, see the below

illustrative example.

- In this scenario, Investors A, B, and C decide to pool their funds, contributing $50,000, $35,000, and $15,000 respectively, totalling $100,000.

- The Money Manager, responsible for trading on their behalf, charges a 20% performance fee on any earnings generated. 

- Now, let’s say the Money Manager successfully trades and achieves a 12.5%

gain on the total investment, which amounts to $12,500 in profit. After

deducting the 20% performance fee, which amounts to $2,500, the remaining

$10,000 is distributed proportionally among the investors according to their

initial contributions: 

 Investor A: 50% of the pool, receives $5,000 of the net earnings. 

 Investor B: 35% of the pool, receives $3,500 of the net earnings. 

 Investor C: 15% of the pool, receives $1,500 of the net earnings.