Managed Forex Trading

Managed Forex Trading is done using what is called a managed Forex Account.Managed Forex Accounts are owned by several investors but managed or traded by a professional trader or a manager on the behalf of these investors. The managers are allowed only to trade with these accounts .Investors on the other hand retain full control over the accounts and the money in those accounts. It is a wonderfully structured model and is well suited for professionals who have other occupations apart from Forex trading.

Working of Managed Forex Trading

The investor is advised by trader or manager to open a Forex account in a brokerage firm of his choice. The investor then deposits funds in his account. The money cannot be touched by the trader or anybody else. Trader is not even permitted to deposit or withdraw money from the investor’s account without the investor’s permission.

The only way, in which this Managed Forex Trading account differs from individual account is that, it gets to be called as a master block as the funds are traded professionally by a seasoned trader or money manager. This permission is provided to the trader by the investor through a document which is called the Limited Power of Attorney Agreement. It is one of the most common and preferred ways to get one’s money traded and ensures maximum safety, control and transparency. Investors on the other hand can check their balance, deposit or withdraw funds from this master block as and when they intend to do so. These types of accounts do not have any lock in period as is the case of many other investments. As a result investors can revoke the Limited Power of Attorney Agreement at any time and can withdraw their funds if they are not happy with the trader. Traders indulge in trading such master accounts using the LAMM, MAM or PAM software.