Read Time: 6-7 minutes

Essential Ratios Every Beginner Trader Should Know. The Fibonacci sequence and the golden ratio have long fascinated mathematicians, scientists, and artists. Their influence extends across every aspect in life and can be observed in nature, architecture, and even the financial markets. Fibonacci-based tools are readily available and can assist in identifying entry and exit points, retracement lengths and more.

   

What is Fibonacci and Why Does It Matter in Trading?

   

The Fibonacci sequence consists of a series of numbers where each value is the sum of the two preceding numbers, starting from 0 and 1. For example, 1+1=2, 1+2=3, 2+3=5, and so on. When we continue this pattern we get:

   

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...

   

Taking it one step further, if we observe the mathematical correlations between these numbers, we identify a range of ‘ratios’. For example, if we divide 21 by 34, we get 0.618%. If we divide 21 by the number two spots to the right (55), we get 38.2 and so on.

   

This mathematical constant appears in various natural and human-made structures, from spiral galaxies to architectural designs, and even nature.

In trading, Fibonacci ratios can help analyse price action, pinpointing areas where market trends may pause, reverse, or accelerate. By learning to apply these ratios, you can identify potential support and resistance levels, retracement zones, and projected price targets, ultimately giving you better entries and exits on your trades.

   

Breaking Down the Key Fibonacci Ratios

   

The most widely used Fibonacci ratios in forex trading originate from the relationships between sequence numbers. As an example, some of the most commonly used in trading include:

   

     
• 23.6% – A minor retracement level often observed in strong trends.
     
• 38.2% – A commonly used retracement level where price corrections may occur.
     
• 50% – Not an official Fibonacci ratio, but significant due to psychological factors.
     
• 61.8% – The golden ratio, a crucial level for support and resistance.
     
• 78.6% – A deeper retracement level where strong reversals may occur.
     
• 161.8% – A common extension level used to forecast potential price targets.
   

   

These ratios are applied using Fibonacci retracements and extensions.

   

How to Use Fibonacci Retracements

 

Read time: 3 minutes.

Indicative Dividend Adjustments for Indices: Week Starting March 24th, 2025.

* Please note these figures are quoted in the index point amount and are subject to change

What is a dividend?

Dividends are a portion of company earnings given to shareholders. As indices are often composed of individual shares, an index dividend pays out based on individual shares proportional to the index’s weighting.

Trading on a CFD Index does not create any ownership of the underlying stocks, or an entitlement to receive the actual dividends from these companies.

What is an ex-dividend date?

An ex-dividend date is the cut-off date a share must be owned in order to receive a dividend. If an investor buys a share after the ex-dividend date, then they will not be entitled to earn or pay the next round of dividends. This is usually one business day before the dividend.

Do dividends affect my position?

Share prices should theoretically fall by the amount of the dividend. If the company has paid the dividend with cash, then there is less cash on the balance sheet, so in theory, the company should be valued lower (by the amount of the dividend).

Due to the corresponding price movement of the stock index when the ex-dividend date is reached, Fusion must provide a 'dividend' adjustment to ensure that no trader is positively or negatively impacted by the ex-dividend event.

How will the dividend appear on my account?

The dividend will appear as a cash adjustment on your account. If your base currency is different from the currency the dividend is paid out in, then it will be converted at the live FX rate to your base currency.

Why was I charged a dividend?

Depending on your position, given you are holding your position before the ex-dividend date, you will either be paid or charged the amount based on the dividend. Traders shorting an index will pay the dividend, whereas traders who are long the index will be paid the dividend.

Why didn’t I receive my dividend?

You may not have received a dividend for a number of reasons:

- You entered your position after the ex-dividend date

- You are trading an index without dividend payments

- You are short an index

If you believe the reasons above do not apply to your position, please reach out to our support team at [email protected] and we’ll investigate further for you.

Read time: 3 minutes.

1. The U.S. Dollar’s Strength and Global FX Implications 
   
   

2. Carry Trade Opportunities in High-Yielding Currencies 

3. The Euro’s Structural Weakness and Political Uncertainty 

Figure 1 – EURJPY Weekly Chart 

Figure 2 – Euro Volatility Index, daily chart 

4. Commodity Currencies 

Figure 3 – XAUUSD (gold), daily chart 

5. Geopolitical Crossroads and FX Volatility 

Figure 4 – USDCNH, weekly chart 

Final Thoughts 

Read Time: 5 Minutes

We are always listening to our community and striving to improve our trading experience. Today, we’re excited to announce the launch of our newly revamped ‘Refer a Friend’ program, offering greater rewards and flexibility for sharing Fusion Markets with your Friends. Terms and Conditions apply. 

What’s new? 

Your Reward Options 

Option 1: Earn a once off Payment 

Option 2: Reduce Commissions 

How it works? 

Step 1: Get Your Link 

Step 2: Share Your Link 

Step 3: Earn Rewards 

For New Clients 

Why We Upgraded the Program 

FAQ’s  

Ready to start referring? 

Read Time: 6 minutes

Donald Trump’s return to Office as the 47th President of the United States marks a significant political and economic shift, creating both opportunities and challenges in the forex market. 

Trumps second-term agenda, marked by aggressive trade policies, tax reforms, and deregulation, has the potential to impact global markets in complex ways, especially the foreign exchange market. Fear not; there will be plenty of opportunities to accompany any disruptions that the Trump Administration will bring.

One of Trump’s most critical economic agenda’s is his renewed focus on tariffs. As during his first term, Trump has emphasised targeting China, with plans to raise tariffs on Chinese imports by 10–15%, ultimately increasing tensions between the two nations.

Why does this matter?

China’s economy has direct and indirect influences on markets, primarily through global trade. In 2024, China's foreign trade reached new heights, with total goods imports and exports amounting to 43.85 trillion yuan (approximately USD $6.1 trillion), marking a 5% increase from the previous year. Exports grew by 7.1% to 25.45 trillion yuan, while imports saw a 2.3% rise to 18.39 trillion yuan.

The trade surplus expanded significantly, reaching a record $992 billion, driven by a surge in exports, particularly to the U.S. So, you can imagine how Trump’s focus on tariffs could affect this.

Other proposals include broad tariff hikes, with some extreme scenarios suggesting across-the-board levies of up to 10% or a staggering 60% on Chinese goods. Such moves, while aimed at protecting American industries, carry substantial implications for global trade flows – which will of course affect currency rates.

The U.S. dollar, often a safe-haven currency as we know it, has provided an impressive bull-run recently;

Figure 1-DXY (US Dollar Index) Daily Chart

There are essentially two scenarios:

1. A weaker USD
   
   In his first term as US President, Trump openly said the dollar (USD) was too high. And now, in his second term, he’s singing the same tune. This could provide some fantastic opportunities for us forex traders – especially when currencies such as the AUD and NZD are severely undervalued.
   
   
2. Continued dollar strength
   
   We could see further strength if global investors react to heightened uncertainty and anticipated inflationary pressures.

How to Trade Trump 2.0

Monetary and Fiscal Policy Signals

Look for Hedging Opportunities

Be Prepared and Adapt

News and Risk Management