Example:
A Managing Trader has 10000 USD in his account. Three investors decided to invest 1000 USD, 2000 USD and 7000 USD in it respectively.
- 1) First investor funded 1000 USD and he would get an interest equal to 1000 / (total deposit) = 1000 / (10000 + 1000 + 2000 + 7000) = 1000 / 20000 = 5%.
- 2) Second investor funded 2000 USD and he would get an interest equal to 2000 / (total deposit) = 2000 / (10000 + 1000 + 2000 + 7000) = 2000 / 20000 = 10%.
- 3) Third investor funded 7000 USD and he would get an interest equal to 7000 / (total deposit) = 7000 / (10000 + 1000 + 2000 + 7000) = 7000 / 20000 = 35%.
- 4) The interest of the Managing Trader will be equal to 10000 / 20000 = 50%
Consequently, funding his trading account with 10000 USD and getting investment from traders, Managing Trader got the same interest in his account as Investors. All interests are directly proportional to investments of all participants (Managing Trader and Investors) in the total deposit of the account.
If furthermore, new Investor joins them and decides to invest 5000 USD in this account, his interest will be 5000 / (20000 + 5000) = 20%. Shares of other members will also change because of new invested funds, but will not reduce while absolute calculation.