GLOBAL WTD

Money management terminology

Understand the differences between copying trades and delegated account arrangements.

Copy trading

Copying a strategy links some account decisions to another trader's activity. Before considering an arrangement, ask what is copied, how position sizes are set and what happens when execution differs between accounts. A historical leaderboard is not a guarantee of a future result.

PAMM and MAM labels

These labels are used for different managed-account structures. Their precise meaning depends on the provider's contracts and systems. Request a written explanation of allocation, ownership, decision-making authority, reporting, fees and withdrawal rights. Do not assume that the same abbreviation means identical protections across providers.

Separate authority from performance

Who can place orders is a different question from who can move money. Establish both explicitly. Check the legal entity, the relevant permissions and the process for revoking authority through independent records and the actual agreement.

Questions worth writing down

• Which decisions would I delegate?
• What limits apply to risk and position size?
• How are fees calculated after losses?
• How do I stop the arrangement and obtain records?

This page explains terminology and does not offer a managed-account service. Review the risk guide.