TRADING GLOSSARY
Fibonacci retracement
Fibonacci retracement is a charting tool that marks potential support or resistance within a previous price move using ratios such as 38.2% and 61.8%. Traders use these levels to study pullbacks, but prices do not have to pause or reverse there.
EXAMPLE
In a hypothetical rise from 100 to 120, a 38.2% retracement is 112.36: the peak minus 7.64, or 38.2% of the 20-point rise.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure