Read time: 3 minutes.

Read time: 3 minutes.

Please see the table below for any upcoming dividend adjustments on indices for the week starting November 4th, 2024.

* Please note these figures are quoted in the index point amount

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.

Table of Contents

1. Introduction
2. The Promise of AI in Forex
3. Current Realities of AI in Forex
4. Common Misconceptions
5. AI vs. Human Traders
6. The Future of AI in Forex
7. Final Thoughts

Introduction

Artificial Intelligence (AI) is revolutionising many industries, and forex trading is no exception. It’s estimated that AI-driven trading could reach US$19 billion in revenue by 2028.

According to the International Monetary Fund (IMF); “the share of AI content in patent applications related to algorithmic trading has risen from 19 percent in 2017 to over 50 percent each year since 2020, suggesting a wave of innovation is coming in this area.”

Although this may be exciting at first, every trader must be sure to distinguish between the hype, and reality.

AI is still evolving, and its application to the forex market is not yet foolproof. AI should be considered as a tool, rather than a solution to guaranteed profits. Although AI can process data incredibly quickly, human discretion is still a pivotal aspect of trading.

The Promise of AI in Forex

AI promises to bring numerous benefits to forex trading, often by outperforming humans in specific areas;

• Enhanced Data Analysis: AI can analyse vast amounts of data in real-time, much quicker than any human ever could. It can quickly identify patterns across multiple currency pairs, interest rates, and economic indicators, something that would take human traders hours, if not, days.

• Faster Trade Execution: In high-frequency trading (HFT), speed is everything. AI algorithms execute trades in milliseconds based on pre-set criteria, enabling traders to capture small, short-term price movements before the competition even reacts.

• Emotion-Free Decision Making: Emotion and trading don’t mix - often leading to costly mistakes. AI removes the element of fear, greed, or hesitation, making decisions purely based on data and predefined algorithms. This is especially beneficial in volatile markets where emotional discipline is paramount.

Current Realities of AI in Forex

While the promises are enticing, the reality of AI in forex is far more complex. AI may have seen success in niche areas like high-frequency trading (HFT) and pattern recognition.

However, AI has significant limitations and challenges that traders must be aware of:

• Data Dependency: AI is only as good as the data it’s given. Poor data quality or biased historical data can lead to incorrect predictions. This is why many AI models fail during black swan events that disrupt the market, such as the 2020 pandemic.

• Complexity in Adapting to Market Conditions: AI excels in stable or predictable environments but struggles in a chaotic environment that poses many unforeseen disruptions and volatility. The most recent example, the 2020 Covid-19 pandemic, many institutions had become accustomed to.

As an example, financial institutions have been known to use AI algorithms to exploit small price discrepancies across different markets, leading to some great successes. However, when the 2020 Covid-19 pandemic disrupted markets, AI struggled to adapt to the rapidly changing conditions and, in some cases, leading to large losses for the institutions running them.

For more insights on how AI is evolving in forex trading, you can check out this detailed post on Fusion Markets, where the use of AI tools like ChatGPT is discussed in the context of market analysis and trading strategies.

Common Misconceptions About AI in Forex

There’s no shortage of misconceptions about AI's role in forex trading;

• "Set it and forget it" myth: Many traders believe AI can be programmed once and left to generate profits indefinitely. This is far from reality. AI algorithms require constant monitoring, updating, and recalibration to keep pace with the ever-changing dynamics of the market.

• AI guarantees profits: Some traders fall for the myth that AI trading guarantees profits. However, no system—AI or otherwise—can ensure consistent profits. Forex markets are affected by too many unpredictable factors, such as global politics, economic crises, and even natural disasters, for any system to be foolproof.

• AI can predict black swan events: Despite all its power, AI cannot predict rare, unpredictable events like black swans. These events, by their nature, fall outside the scope of traditional data patterns and are difficult for AI to forecast.

AI vs. Human: A Balanced Comparison

AI and human traders bring different strengths to the table, and understanding these distinctions is key to developing a robust, and successful, trading strategy.

• AI’s Strengths: AI excels at processing massive amounts of data, identifying subtle market patterns, and executing trades with precision and speed. It removes human biases and can operate 24/7 without fatigue.

• Human Trader’s Strengths: On the other hand, human traders excel in areas where AI currently struggles—especially in understanding the broader context behind market movements. Human intuition, experience, and the ability to adapt to unpredictable events are areas where traders can outperform AI. For instance, human traders can weigh the political implications of an unexpected event, such as Brexit, where AI on the other hand might struggle to incorporate in real-time decision-making.

A hybrid approach that combines AI’s strengths with human insight may be the best way forward. AI can manage data processing and execution, while human traders focus on strategy, risk management, and adjusting for unforeseen market conditions.

The Future of AI in Forex

It’s still early days for AI in forex trading, but it’s rapidly evolving. Emerging technologies such as Natural Language Processing (NLP) and quantum computing are expected to transform AI's role in the financial markets further.

• NLP: This allows AI systems to interpret news articles, social media sentiment, and other forms of unstructured data that can influence market movements. For example, NLP can be used to gauge how a new economic policy or geopolitical event may impact currency pairs.

• Quantum Computing: While still theoretical in many applications, quantum computing holds the potential to perform complex calculations much faster than traditional computers. This could give AI even greater predictive power in markets where speed and computational capacity are crucial.

Our Final Thoughts

AI has undeniably transformed many industries, including the forex market. Whilst it can enhance data analysis, execution speed, and remove emotional biases, it’s no holy grail. The best approach is to employ AI with a balanced perspective—recognising its limitations whilst leveraging its strengths to complement your own trading strategies.

In short, AI is a powerful tool, but not a guarantee of success. The key to successful AI-driven trading lies in combining human intuition with algorithmic precision – we, as traders, must keep an eye on these trends but always remain cautious about relying on AI-driven systems.

Happy Trading

Read Time: 12 minutes

In the fast-paced world of forex trading, success often hinges on more than just market knowledge and technical skills. A crucial yet often overlooked aspect is the power of a strong support network. 

This network can provide invaluable insights, emotional support, and continuous learning opportunities that can significantly enhance your trading journey. In this article, we’ll discuss ideas on how you can build your own support network.

Table of Contents:

• The Power of Community in Forex Trading
• Learning Resources: The Foundation of Your Forex Education
• The Benefits of Joining Trading Communities
• Building Your Personal Forex Support Network
• Leveraging Online Platforms for Community Building
• The Role of Brokers in Your Support Network
• Continuous Learning: The Lifeline of Forex Trading
• Navigating the Challenges of Online Communities
• The Global Nature of Forex Communities
• Technology and Forex Communities
• The Psychological Benefits of a Support Network
• Conclusion: Your Path to Forex Success

The Power of Community in Forex Trading

Forex trading can be a solitary endeavour, with traders spending hours analysing charts and executing trades. However, connecting with fellow traders can transform this experience into a collaborative and enriching one. A robust forex support network offers numerous benefits, including shared knowledge, emotional support, and access to diverse perspectives.

Learning Resources: The Foundation of Your Forex Education

Education forms the cornerstone of successful forex trading. As a trader, it's crucial to continually expand your knowledge and stay updated with market trends. Several platforms offer comprehensive educational resources for traders at all levels.

BabyPips: Your Forex University

BabyPips is renowned for its "School of Pipsology," a free, comprehensive forex trading course. It covers everything from basic terminology to advanced trading strategies, making it an excellent starting point for beginners and a valuable refresher for experienced traders.

Forex Factory: Your Market News Hub

Forex Factory is a go-to resource for many traders seeking up-to-date market news, economic calendars, and trading forums. Its user-friendly interface and real-time updates make it an indispensable tool for staying informed about market-moving events.

TradingView: Your Technical Analysis Companion

TradingView offers advanced charting tools and a platform for sharing trade ideas. With over 50 million users, it's not just a technical analysis tool but also a thriving community where traders can learn from each other's chart analyses and trading strategies.

The Benefits of Joining Trading Communities

Becoming part of a trading community can significantly accelerate your learning curve and provide ongoing support throughout your trading journey.

Guidance from Experienced Traders

One of the most valuable aspects of trading communities is access to experienced traders. These seasoned traders can offer insights into market dynamics, share proven strategies, and provide mentorship. Their guidance can help you avoid common pitfalls and develop a more nuanced understanding of the forex market.

Real-Time Market Insights

Trading communities often feature live discussions about current market trends and potential trading opportunities. This real-time information can be invaluable in making informed trading decisions. Members often share their analyses of market conditions, providing diverse perspectives that can enhance your own market understanding.

Collaborative Learning Through Trade Ideas and Chart Analysis

Many trading communities encourage members to share their trade ideas and chart analyses. This collaborative approach to learning allows you to see how other traders interpret market data and make decisions. By examining different approaches, you can refine your own trading strategy and discover new techniques.

Emotional Support and Motivation

Trading can be an emotional rollercoaster, with highs of successful trades and lows of losses. A supportive community can provide the emotional backing needed during challenging times. Sharing experiences with fellow traders who understand the unique pressures of forex trading can help maintain motivation and resilience.

Active Participation: The Key to Maximising Community Benefits

While joining a trading community is a great first step, the real value comes from active participation. Engage in discussions, ask questions, and share your own insights. The more you contribute, the more you're likely to gain from the community.

Building Your Personal Forex Support Network

Beyond online communities, consider building a personal support network. This could include:

• Family and Friends: Their encouragement and understanding, especially during your dedicated trading and learning hours, can create a favourable environment for your trading journey.
• Trading Mentor: A mentor can offer tailored advice based on your trading style and goals, helping you navigate the complexities of trading the forex market.
• Fellow Traders: Connecting with other traders, whether online or in-person, can provide peer support and opportunities for knowledge exchange.

Leveraging Online Platforms for Community Building

Several online platforms facilitate community building among forex traders:

Forex Forums

Platforms such as Forex Factory, BabyPips, and MyFXbook host active forums where traders discuss various topics, from basic concepts to advanced strategies. These forums are excellent places to ask questions, share experiences, and learn from diverse perspectives.

Social Trading Platforms

Platforms like eToro and ZuluTrade allow you to follow and copy trades of successful traders. This can be an excellent way to learn from experienced traders while potentially benefiting from their expertise.

Trading-Focused Social Media

Many traders use Twitter, LinkedIn, and specialised platforms like TradingView to share insights and connect with other traders. Following reputable traders and analysts on these platforms can provide a steady stream of valuable information and opportunities for engagement.

The Role of Brokers in Your Support Network

Your forex broker can also be a valuable part of your support network. Many brokers offer educational resources, webinars, and customer support to help you navigate the trading platform and understand market dynamics. Choose a broker that aligns with your needs and offers robust support services.

Continuous Learning: The Lifeline of Forex Trading

The forex market is dynamic, with conditions constantly evolving. Your support network should facilitate continuous learning to help you stay ahead of market trends. Look for communities and resources that regularly update their content and provide insights into emerging market patterns.

Risk Management: A Community Effort

While individual traders are ultimately responsible for their own risk management, a supportive community can provide valuable insights into effective risk management strategies. Discussions about position sizing, stop-loss placement, and overall risk exposure can help you refine your approach to risk.

Navigating the Challenges of Online Communities

While online communities offer numerous benefits, it's important to approach them with a critical mind. Not all advice is created equal, and it's crucial to verify information from multiple sources. Be wary of individuals promising guaranteed returns or pushing specific trades. A healthy scepticism combined with thorough research will serve you well in navigating online forex communities.

The Global Nature of Forex Communities

One of the unique aspects of forex trading is its global nature. Your support network can include traders from around the world, providing insights into different market sessions and regional economic factors. This global perspective can enhance your understanding of currency pair movements and international economic dynamics.

Technology and Forex Communities

Advancements in technology have revolutionised how forex communities interact. From mobile apps that allow real-time chat with fellow traders to AI-powered tools that aggregate community sentiment, technology is making it easier than ever to stay connected with your forex support network. Embrace these technological tools to enhance your community experience and trading outcomes.

The Psychological Benefits of a Support Network

Trading can be psychologically demanding, with the potential for stress and emotional decision-making. A strong support network can provide a psychological buffer, offering encouragement during tough times and helping you maintain a balanced perspective. This emotional support can be crucial in developing the mental resilience necessary for long-term trading success.

Conclusion: Your Path to Forex Success

Building a robust forex support network is not just beneficial; it's essential for long-term success in trading forex. From educational resources to emotional backing, the right connections can significantly enhance your trading experience.

By actively participating in trading communities, engaging with mentors, and utilizing the plethora of online resources available, you can create a comprehensive support network that fosters your growth as a trader.

Remember, the journey of forex trading is not just about numbers; it’s about the community and connections that can help you navigate the complexities of the market. Start building your support network today and watch your trading journey flourish!

Read time: 10 minutes.

Developing a reliable and effective trading strategy is essential. One of the most powerful tools at a trader’s disposal is backtesting – a process in which you can evaluate a trading strategy’s potential profitability and consistency against historical market data.

This process helps identify strengths and weaknesses in your strategies, enabling you to make necessary adjustments before trading real money.

Given the volatile nature of Forex trading, especially in currency pairs like AUD/USD and EUR/NZD, backtesting is essential for gaining a competitive edge. These currency pairs are known for their dynamic movements, influenced by various factors such as economic indicators, geopolitical events, and central bank policies. By backtesting your strategy on these pairs, you can better understand how your approach might perform under different market conditions, providing you with the confidence to execute trades in real time.

The information provided in this article is for educational and informational purposes only. Backtesting, while a useful tool, does not guarantee future results