How the LAMM Service Works

The LAMM Service uncovers numerous benefits for Investors while they copy trades of experienced traders. Forex Optimum Group guarantees a high copying speed, the price authenticity of the trades copied and complete financial transparency of the LAMM Service. The LAMM Service protects interests of both Traders and Investors and guarantees fair settlement.

  • Trade Copying

    Under the LAMM Service, the volume of an Investor's transaction is proportional to the ratio of the Investor's equity to the Trader's equity.

    Vinv=Ratio()×(Equityinv/Equitytrader)×Vtrader

    where

    • Vinv – the volume of a replicated trading transaction in the Investor Account,
    • Vtrader – the volume of a trading transaction in the Trader Account,
    • Equityinv – the amount of equity in the Investor Account at the moment of replicating a trading transaction,
    • Equitytrader – the amount of equity in the Trader Account at the moment of replicating a trading transaction,
    • Ratio(%) – Replication Ratio.

    The amount of the Trader's and Investor's equity includes own funds, bonuses and credits.

  • Retention Account

    While registering an account, every Trader sets a commission reward, which a Trader gets based on the profit of the Investors who opted to copy this Trader's trading strategy. For every closed profitable trade in the Investor Account, a commission fee is charged, which is then reserved on a special retention account:

    Comm=Profit*Fee(%)

    where

    • Comm – the amount of the commission fee for a transaction,
    • Profit – the profit made on the closed trade,
    • Fee(%) – the Trader's commission rate set as per the Trader's Offer
  • Settlement

    After an accounting period has ended or the collaboration between the Investor and Trader has been terminated, the retention account is distributed between them in such a way that the Trader may only get what is due:

    If all trading transactions replicated from the Trader Account during the accounting period resulted in profit for the Investor Account:

    • Rewardtrader=Fee(%)×Profitperiod
    • Returninvestor=Summperiod-Rewardtrader

    where

    • Rewardtrader – the Trader's reward
    • Returninvestor – the amount of commission refund to the Investor Account
    • Summperiod – the total of all commission fees accrued during the accounting period
    • Profitperiod – the profit resulting from the execution of respective replicated trading transactions
    • Fee(%) – the commission fee set as per the Trader's Offer

    If all trading transactions replicated from the Trader Account during the accounting period resulted in losses for the Investor Account:

    Returninvestor=Summperiod

  • Example: Trader's Reward: 10% of profit
      Trader Investor Retention Account
    Transaction Number Equity Volume, lots Profit/Losses Equity Volume, lots Profit/Losses Commission on profit Account Balance
    1 $2 000,00 0,2 $300,00 $1 000,00 0,10 $150,00 $15,00 $15,00
    2 $2 300,00 0,3 -$200,00 $1 135,00 0,15 -$98,70 $0,00 $15,00
    3 $2 100,00 0,5 $400,00 $1 036,30 0,25 $197,39 $19,74 $34,74
    4 $2 500,00 0,7 $600,00 $1 213,96 0,34 $291,35 $29,13 $63,87
    5 $3 100,00 0,6 $150,00 $1 476,17 0,29 $71,43 $7,14 $71,02
    6 $3 250,00 1,0 -$300,00 $1 540,46 0,47 -$142,20 $0,00 $71,02
    7 $2 950,00 0,8 -$400,00 $1 398,26 0,38 -$189,59 $0,00 $71,02
    8 $2 550,00 0,9 $300,00 $1 208,67 0,43 $142,20 $14,22 $85,24

    The profit from all transactions in the Investor Account is: $ 421,88

    The Trader's reward (10%) is: $42,19

    The refund to the Investor is: $43,05

    Total:

    • Equity in the Investor Account: $1 379,69
    • Investor's Profit: $379,69
    • Trader's Reward: $42,19
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RISK WARNING

Operations, which are available on the website, might be considered as high-risk and their performance may be eminently risk-generating. In case you buy financial instruments and/or services available on the website, you may be exposed to losing the funds invested or deposited on your trading account either in substantial part or in whole. For more information please visit the LEGAL DOCUMENTS page.

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