Glossary — F

We have finished with 'E', now it is time to move on to 'F' and see what new adventures await! FIBONACCI RETRACEMENT: Fibonacci retracement is a trading tool used to predict price movements in financial markets. It is based on the idea that prices tend to retrace a portion of their previous move before continuing in the original direction. Fibonacci retracement is a method of identifying levels of support and resistance in the market. There is 23.6%, 38.2%, 50%, 61.8%, and 76.4% on the line. These levels indicate potential areas of support and resistance. For a deeper understanding of the Fibonacci retracement and how to use it, click on the link below: What Are Fibonacci Retracement Levels, and What Do They Tell You? FOREX (FX) Forex (Short for Foreign Exchange) is a market where people trade currencies from different countries. For example: Imagine you are traveling to another country and need to exchange your money for the local currency, forex is like a big place where people trade currencies, just like you do at an airport or bank. Say you want to buy euros () with your US dollars ($).

• The exchange rate is like the price: "1 USD = 0.93 EUR".
• You exchange your dollars for euros and now you can buy things in Europe!
• So you're $50 would become 46.

Forex (FX): Definition, How to Trade Currencies, and Examples

Fluctuations

Fluctuations refer to the ups and downs in the value or price of something, like a stock, currency, or commodity. It is a change in value that can happen frequently, even constantly, due to various market and economic factors. So it is basically the up's, down's and stable moments in the market. Fluctuations can be caused by various factors, such as:

• Supply and demand changes
• Economic news and events
• Investor sentiment and emotions

Fluctuations can be:

• Volatile (big, sudden changes)
• Stable (small, gradual changes)
• Unpredictable (hard to forecast)

Understanding fluctuations is essential for investors and businesses to make informed decisions about buying, selling, or holding assets. Fluctuations: How they Affect the Economy

Fundamental Analysis

Fundamental analysis is a method of evaluating a security's (such as a stock, currency, or commodity) value by examining the underlying factors that affect its price. It is a way to understand the "why" behind the price movement. Investors use fundamental analysis to:

• The overall state of the economy
• The strength of the specific industry
• The financial performance of the company issuing the stock
• Evaluate economic indicators, interest rates, and geopolitical events
• Understand supply and demand factors, production costs, and market sentiment

By analysing these fundamental factors, traders can:

• Identify potential trading opportunities
• Set price targets and stop-loss levels
• Make informed decisions about buying or selling

Fundamental analysis helps traders understand the underlying value of a security, making it a powerful tool for making investment decisions! Fundamental Analysis: Principles, Types, and How to Use It FAKE-OUT A fake out refers to a situation where the price of a security (eg., a stock or commodity) moves in a certain direction, but then suddenly reverses. Here is an example:

• A stock price rises rapidly, breaking above a key resistance level, and investors buy in anticipation of further gains.
• However, the price suddenly drops, falling back below the resistance level, and the investors are left with a loss

Fake outs can occur in any market and can be caused by various factors. These include:

• Market volatility
• News events
• Market manipulation

Investors often use risk management strategies, such as stop-loss's and position sizing, to minimise the impact of fake outs. What is a Fakeout in Technical Analysis and How to Spot One

Fixed Income

Think of fixed income like a monthly allowance! Remember when you were younger and your parents gave you a weekly or monthly allowance? It was a set amount of money that you could count on getting regularly, and you could use it to buy the things you wanted or save it for later. Fixed income is like a grown-up allowance! When you invest in something with a fixed income, like a bond, you get a regular payment, like a monthly allowance! It is a predictable and stable way to earn money, and it can help you plan for the future! Guide to Fixed Income: Types and How to Invest You have gotten this far already! Stick around to lean into investment terms starting with `G'. Share this post: Categories STIOSTM: Terminology Sign up for blog updates! Join my email list to receive updates and information. Email address

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