The profits or losses from investments in a PAMM account are distributed among investors based on the amount of their investment. The trader, acting as the Investment Manager, receives a percentage of the profits as a performance fee, in addition to their own share of the profits.
If investments result in losses, these losses are also distributed among investors proportionally. No performance fee is charged if losses occur.
Profits or losses are distributed at the end of each trading round, which can last for days, weeks, or months, depending on the trading strategy employed. Following this, the Investment Manager initiates the next round of forex trades.