What is Profit Share in FXTM Invest?
Profit Share represents a percentage of the profits that will be rewarded to the Strategy Manager for his or her positive performance. The corresponding profit share is deducted from the Investor’s account and transferred to the Strategy Manager’s Wallet. Strategy Managers are free to set their own Profit Share ranging from 0% to 30%. Profit Share is paid in four instances:
- Every 30 days from the day of activation of the Investment account
- In case of withdrawal from the Investment Account
- In case of closure of the Investment Account
For example, say the equity in the Investment Account on January 10th is $1000 and the Profit Share is set at 20%. On the 9th of February the Equity rises to $1400. As 30 days passed between the 10th of January and 9th of February, a Profit Share of 20% is calculated like so: 400 x 20% = $80
This Profit Share of $200 is deducted from the Investment Account and transferred to the Strategy Manager’s Wallet. Here’s an example of Profit Share paid as a result of Investor’s withdrawal:
Investor’s Equity on January 10th = $1000
Investor’s Equity on January 15th = $2000
Profit Share = 20%
Returns = $1000
When the Investor decides to withdraw $500, the Profit Share is calculated using the following formula:
Withdrawal Amount / Investment Account Equity =
500 / 2000 = 0.25
Profit Share = 20% X 1000 X 0.25 = $50
Profit Share= Profit Share % X Return X (Withdrawal Amount / Investment Account Equity)
This Profit Share of $50 is deducted from the Investment Account and transferred to the Strategy Manager’s Wallet. The longer the Strategy Manager has traded, the more confident the investor should be.
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