On every deposit and withdrawal, the open positions on a PAMM master account are reallocated to the subscribed investment accounts in proportion to their equities. Reallocation runs during the rollover.
Why it matters
Rebalancing by equity keeps each investor’s share of the master’s open positions fair as money enters and leaves the pool, so no investor ends up over- or under-exposed after a deposit or withdrawal.
Worked Example
Two investment accounts (#1 and #2) are subscribed to one PAMM master. All balances start at zero; the traded symbol is EUR/USD (1 lot = 100,000 units). The walkthrough below adds one step at a time — each table repeats the earlier rows (dimmed) and highlights the new one. Watch the Open positions column: each investor’s share is closed and reopened at the current price on every reallocation, while the master keeps its original 1.1555 position.
Why master equity ≠ master balance
Only the investor virtual positions are closed and reopened during reallocation. The master keeps its real position (1 lot opened at 1.1555), so its equity carries the floating P&L on that lot while the price moves — that is why master equity differs from master balance whenever a position is open.
The example builds up one step at a time. In each table the newest step is highlighted and its changed cells are shown in the accent color; earlier steps are dimmed. Scroll a table sideways to see all three accounts.
During rollover the transfer is made; both Investment #1 and the master balance rise by 1,000 USD. No position is open yet.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
The position is reallocated only to Investment #1 — the only account with a positive balance.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
Volume #1 = 1 lot × 1,000 / 1,000 = 1 lotThe master and Investment #1 both hold 1 lot opened at 1.1555, so each gains the same floating profit.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
Equity = 1,000 + 1 lot × (1.1600 − 1.1555) × 100,000 = 1,450The master balance rises by 550. The master’s real lot is reallocated across both investors in proportion to equity: Investment #1’s virtual lot is closed at 1.1600 (realizing 450) and reopened, and Investment #2 receives its share. The master keeps its lot, so its equity (2,000) equals the two investor equities combined.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD → reallocate | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 1,450 | 0.73 lots EUR/USD @1.1600 | 1 lot @1.1600 +450 realized | 550 | 550 | 0.27 lots EUR/USD @1.1600 | — |
Master equity = 1,550 + 1 lot × (1.1600 − 1.1555) × 100,000 = 2,000
Profit #1 (closed @ 1.1600) = 1 lot × (1.1600 − 1.1555) × 100,000 = 450 → balance #1 = 1,450
Volume #1 = 1 lot × 1,450 / 2,000 = 0.73 lots
Volume #2 = 1 lot × 550 / 2,000 = 0.27 lots
Reallocation base 2,000 = master equity = investor equities 1,450 + 550Each account gains floating profit on its current open volume.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD → reallocate | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 1,450 | 0.73 lots EUR/USD @1.1600 | 1 lot @1.1600 +450 realized | 550 | 550 | 0.27 lots EUR/USD @1.1600 | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 2,180 | 0.73 lots EUR/USD @1.1600 | — | 550 | 820 | 0.27 lots EUR/USD @1.1600 | — |
Master equity = 1,550 + 1 lot × (1.1700 − 1.1555) × 100,000 = 3,000
Equity #1 = 1,450 + 0.73 lots × (1.1700 − 1.1600) × 100,000 = 2,180
Equity #2 = 550 + 0.27 lots × (1.1700 − 1.1600) × 100,000 = 820Investment #2’s 0.27 lots are closed at 1.1700, the balance is withdrawn, and the master balance drops by that amount. The remaining position is reallocated to Investment #1, which holds the full lot again.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD → reallocate | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 1,450 | 0.73 lots EUR/USD @1.1600 | 1 lot @1.1600 +450 realized | 550 | 550 | 0.27 lots EUR/USD @1.1600 | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 2,180 | 0.73 lots EUR/USD @1.1600 | — | 550 | 820 | 0.27 lots EUR/USD @1.1600 | — |
| Step 6 · Investor #2 exits & withdraws → reallocate | 730 | 2,180 | 1 lot EUR/USD @1.1555 | — | 2,180 | 2,180 | 1 lot EUR/USD @1.1700 | 0.73 lots @1.1700 +730 realized | 0 | 0 | — | 0.27 lots @1.1700 +270 realized |
Profit #2 = 0.27 lots × (1.1700 − 1.1600) × 100,000 = 270 → balance #2 = 820, then withdrawn → 0
Master balance = 1,550 − 820 = 730
Profit #1 = 0.73 lots × (1.1700 − 1.1600) × 100,000 = 730 → balance #1 = 2,180
Volume #1 = 1 lot × 2,180 / 2,180 = 1 lotWith one investor holding the whole position again, the master and Investment #1 equities move together.
| Step | PAMM master | Investment #1 | Investment #2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | Balance | Equity | Open positions | Closed positions | |
| Step 1 · Investor #1 deposits 1,000 USD | 1,000 | 1,000 | — | — | 1,000 | 1,000 | — | — | 0 | 0 | — | — |
| Step 2 · Trader opens EUR/USD buy 1 lot @ 1.1555 | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,000 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 3 · EUR/USD rises to 1.1600 | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 1,000 | 1,450 | 1 lot EUR/USD @1.1555 | — | 0 | 0 | — | — |
| Step 4 · Investor #2 deposits 550 USD → reallocate | 1,550 | 2,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 1,450 | 0.73 lots EUR/USD @1.1600 | 1 lot @1.1600 +450 realized | 550 | 550 | 0.27 lots EUR/USD @1.1600 | — |
| Step 5 · EUR/USD rises to 1.1700 | 1,550 | 3,000 | 1 lot EUR/USD @1.1555 | — | 1,450 | 2,180 | 0.73 lots EUR/USD @1.1600 | — | 550 | 820 | 0.27 lots EUR/USD @1.1600 | — |
| Step 6 · Investor #2 exits & withdraws → reallocate | 730 | 2,180 | 1 lot EUR/USD @1.1555 | — | 2,180 | 2,180 | 1 lot EUR/USD @1.1700 | 0.73 lots @1.1700 +730 realized | 0 | 0 | — | 0.27 lots @1.1700 +270 realized |
| Step 7 · EUR/USD falls to 1.1650 | 730 | 1,680 | 1 lot EUR/USD @1.1555 | — | 2,180 | 1,680 | 1 lot EUR/USD @1.1700 | — | 0 | 0 | — | — |
Master equity = 730 + 1 lot × (1.1650 − 1.1555) × 100,000 = 1,680
Equity #1 = 2,180 + 1 lot × (1.1650 − 1.1700) × 100,000 = 1,680Handling Insufficient Free Margin During Withdrawal
In the example above the master had enough free margin to process withdrawals as balance operations. In practice, most capital may be tied up in open positions. If free margin is insufficient during rollover, the system automatically releases funds by partially closing positions.
Total the pending withdrawals
The system sums the amount needed for all pending withdrawals.
Check free margin
If free margin is sufficient, open positions are not affected.
Release margin if needed
If free margin is insufficient, the system partially closes open positions proportionally to free up the required amount.
Repeat until covered
The process runs iteratively until enough margin is available to process all pending withdrawals.
Fully automated
Closures are handled entirely by the system during rollover. Neither the master trader nor the investor needs to act. This applies to all rollover withdrawals, including those triggered by a breached investor risk limit.
