How is CBM Cashback Generated?
Cashback is generated from the most liquid market in the world.
Trading is activated
Whether on the fund, or managed account, your capital is traded with automated trading software.
It places trades and therefore generates volume expressed in “lots”.
For each round traded lot (when the trade is closed) a commission, or rebate in forex terms, is generated.
On slow months, less volume is generated.
On active months, more volume is generated.
When trading needs to be halted for any reason it doesn’t yield any volume. For instance with presidential elections or pivotal events.
Cashback to customers
A capped amount of €0,25 is allocated for each CBM customer’s cashback node.
A node is generated for each slice of €50 capital traded on either the Managed Account or the Fund, provided that the customer had purchased enough CBM licenses to activate the cashback node.
This happens every month, as long as trading remains active and has enough balance to trade enough volume.
Withdrawal of trading capital will result in loss of the cashback node and the accompanying cashback commissions for this node.
The CBM licenses used to activate this cashback node will remain yours. So re-activating deactivated nodes by placing trading capital back doesn’t require the purchase of extra CBM licenses.
But, keep in mind that new nodes will be created at the end of the line!
CBM uses its Proprietary software called VPAMM for Distributing
(Virtual Percentage Allocated Money Management)
CASHBACK LEVERAGED BY ALGORITHM
If CBM would just provide a cashback for each client individually, the maximum amount would be very low.
CBM chooses to leverage all the cashback generated for each customer into a distribution algorithm.
Leverage is not referring to trading activities!
For customers, it may seem random to follow up on how their nodes are getting filled. But there’s a very specific algorithm with detailed rules that runs this distribution.
In essence, you will of course receive cashback on your own trading capital, but your trading capital is also generating cashback for the other CBM clients.
And vice versa, other CBM clients are also generating cashback for you.
Most of the time, you will not even know which customer the cashback is originating from.