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What is the difference between a managed account and multi-MA?
What is the difference between a managed account and multi-MA?
Denis Vasil'ev avatar
Written by Denis Vasil'ev
Updated over a week ago

Multi-MA is a manager's account, where the trades are copied from the main managed account (Master Account) with a multiplying factor. Multi-MA expands the functionality of using a regular managed account by providing an investor with several accounts of one manager with different degrees of trading aggressiveness. 

The purpose of the Multi-MA account is the following: an account with the "multiplier" works from the "base" account (Master account), and all trades of the manager are automatically copied from it with the multiplier (2-6).

Example: There is 1 000 USD on the "base" account and the volume is 0,01; the investor has invested in Multi-MA*2 500 USD. As a result, the investment account will have a volume of 0.01 lots.

Thus, the volume on the trade as well as the amount of money earned will be identical.

If the manager during the investment period earns 100 USD on the Master account, the investor will also earn 100 USD. It should be noted that in percentage terms the income on the account with the multiplier "2" will be twice as much, i.e. it will be 20% (100 USD / 500 USD * 100%), while on the "base" account - 10% (100 USD / 1 000 USD * 100%).

The multiplier increases the volume per transaction, thus allowing you to earn more with less investment capital, i.e. gives you an opportunity to reduce non-trading risks.

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