Company Information: This website (www.vestofx.com) is operated by FAIRMONT FINANCIAL SERVICES (PTY) LTD, a South African investment firm, authorized and regulated by the Financial Sector Conduct Authority of South Africa with Financial Service Provider (FSP) license number 51766. FAIRMONT FINANCIAL SERVICES (PTY) LTD is located at registered address Block 1 Constantia view office esta, hogback ave, Randburg, Gauteng, 1709 South Africa. FAIRMONT FINANCIAL SERVICES (PTY) LTD owns and operates the “VestoFX” brand. FAIRMONT FINANCIAL SERVICES (PTY) LTD and EVBX LTD belong to the same Group of Companies. EVBX LTD (ex Vstar & Soho Markets Limited) is regulated by the Cyprus Securities and Exchange Commission with CIF license number 409/22.

Risk warning: Contracts for difference (“CFDs”), are financial instruments which carry a high risk of losing all invested capital due to the fact that they are complex financial products. Trading in CFDs, includes trading with leverage and can lead to the loss of all balance held within your trading account fast. Please keep in mind that leverage in such financial instruments may be advantageous or detrimental. Also, it is crucial to know that a contract for difference gives no right of ownership to the underlying assets. Past performance is not a reliable source for future results and forecasts do not constitute a reliable indicator of future performance. It is essential to know that trading in CFDs is not appropriate for all investors and prior deciding to trade, you should thoroughly consider whether your level of experience, investment objectives and risk tolerance is able to endure the high risk of trading. In no event you should deposit more funds than you are prepared to lose. You should ensure that you understand all risks associated with trading in CFDs and seek independent advice, if necessary. Please read our Risk Disclosure document.

FAIRMONT FINANCIAL SERVICES (PTY) LTD applies strict measures in line with anti-spam regulations by avoiding unsolicited advertising. Please read our Privacy Policy document.

Regional Restrictions:  FAIRMONT FINANCIAL SERVICES (PTY) LTD does not offer services within the European Economic Area as well as in certain other jurisdictions such as the South Africa, USA, British Columbia, Canada and some other regions.

FAIRMONT FINANCIAL SERVICES (PTY) LTD is NOT a financial adviser and does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product.

Learning / Leverage and margin

Leverage and Margin

Knowledge of leverage and margin is fundamental for CFD traders to maximize their trading opportunities while maintaining control over their exposure to market volatility.

What is Leverage?

Leverage in trading involves using borrowed capital to amplify potential returns on an investment. For example, with 1:500 leverage, a trader can significantly increase their potential profits, but this also magnifies the risk of losses. If the market moves in the trader’s favor, profits can be much higher compared to trading without leverage. However, if the market moves against the trader, losses are equally amplified.

What is Margin?

Margin is the amount a trader needs to deposit to open or maintain a leveraged position. For example, if a broker that requires a 2% margin for a trade worth $10,000. In this case, the trader needs to deposit just $200 (2% of $10,000) to enter the trade. This $200 deposit is not a fee but a part of the trader’s funds set aside as collateral. If the market moves in an unfavorable direction and the value of the trade decreases, the trader may receive a ‘margin call’, necessitating an additional deposit to keep the position open or risk having the position closed by the broker.

Let’s make a comparison between margin & leverage:

Margin allows traders to participate in markets with less capital by enhancing their buying power. It helps in diversifying investments and enables access to markets that usually require high capital. However, using margin increases the risk of losses, especially if the market moves unfavorably, potentially triggering margin calls. Interest charges on borrowed funds can accumulate, and the increased buying power may lead to impulsive or high-risk trading.

Leverage increases the potential returns on investment by providing the ability to trade in various markets with limited capital. On the downside, leverage can result in losses that exceed the initial investment, adding significant risk. It can lead to rapid losses in volatile conditions and requires careful risk management and constant market monitoring.

Company Information: This website (www.vestofx.com) is operated by FAIRMONT FINANCIAL SERVICES (PTY) LTD, a South African investment firm, authorized and regulated by the Financial Sector Conduct Authority of South Africa with Financial Service Provider (FSP) license number 51766. FAIRMONT FINANCIAL SERVICES (PTY) LTD is located at registered address Block 1 Constantia view office esta, hogback ave, Randburg, Gauteng, 1709 South Africa. FAIRMONT FINANCIAL SERVICES (PTY) LTD owns and operates the “VestoFX” brand. FAIRMONT FINANCIAL SERVICES (PTY) LTD and EVBX LTD belong to the same Group of Companies. EVBX LTD (ex Vstar & Soho Markets Limited) is regulated by the Cyprus Securities and Exchange Commission with CIF license number 409/22.

Risk warning: Contracts for difference (“CFDs”), are financial instruments which carry a high risk of losing all invested capital due to the fact that they are complex financial products. Trading in CFDs, includes trading with leverage and can lead to the loss of all balance held within your trading account fast. Please keep in mind that leverage in such financial instruments may be advantageous or detrimental. Also, it is crucial to know that a contract for difference gives no right of ownership to the underlying assets. Past performance is not a reliable source for future results and forecasts do not constitute a reliable indicator of future performance. It is essential to know that trading in CFDs is not appropriate for all investors and prior deciding to trade, you should thoroughly consider whether your level of experience, investment objectives and risk tolerance is able to endure the high risk of trading. In no event you should deposit more funds than you are prepared to lose. You should ensure that you understand all risks associated with trading in CFDs and seek independent advice, if necessary. Please read our Risk Disclosure document.

FAIRMONT FINANCIAL SERVICES (PTY) LTD applies strict measures in line with anti-spam regulations by avoiding unsolicited advertising. Please read our Privacy Policy document.

Regional Restrictions:  FAIRMONT FINANCIAL SERVICES (PTY) LTD does not offer services within the European Economic Area as well as in certain other jurisdictions such as the South Africa, USA, British Columbia, Canada and some other regions.

FAIRMONT FINANCIAL SERVICES (PTY) LTD is NOT a financial adviser and does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product.

Risk Warning

Trading in CFDs carry a high level of risk to your capital due to the volatility of the underlying market. These products may not be suitable for all investors. Therefore, you should ensure that you understand the risks and seek advice from an independent and suitably licensed financial advisor.

% completed

Payment methods
Chat Now
In order to make another deposit, you first need to verify your account.
Your file has been rejected. Please contact customer support.
I understand

We need a few moments to check your documents. Please do not exit this window until we’ll finish. Thank you.

Documents are approved

Your file has been rejected. This is a rejection message.

All four corners must be visible.

Clear contrast between document and background.

Maintain document proportions.

Do not obscure any part of the document.

My Profile

Document type
Document name
Status
Documents uploading:

Documents

Most of our customers find it easier to upload these documents using their mobile phones.

Upload with your smartphone

• Please enter your mobile phone number and click on the “Send” button.
• A text message has been sent to your mobile phone.
• Please click on the link you have received on the text message.
• Now you can start uploading your documents.

Document Verification guidelines

Do not obscure any part of the document

Do not obscure any part of the document

Do not obscure any part of the document

Do not obscure any part of the document

I would like to receive:
*In case you've chosen to opt-out from all options above, you'll still receive transactional and other mandatory emails.

Dear ${UserName},

This action is not available for a demo account.
Switch to your live account, add funds and start trading.

Log in to your account

Exit to Homepage

This section is open for clients only, please log in or sign up