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Traders use it for technical analysis of stocks, to help predict how high or low a stock’s price will go. Traders will take two extreme points – high and low – on a chart. Then, they divide the distance by the Fibonacci ratios, 23.6%, 38.2%, 50%, 61.8% and 100%. This helps to discover the vital points where an asset’s price reverses.
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eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
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