The term 'handle' in forex trading refers to the portion of the quote that appears in both the bid and ask price. If a currency pair can be purchased for 1.6456 and sold for 1.6400, its handle is 1.64.

Handles are particularly important in the spot and forward forex markets. Spot markets rely on current (spot) prices, whereas forward markets use future prices.

It is important to note, however, that forex is typically quoted to five decimal places. As a result, traders and brokers frequently disregard the handle entirely and only refer to the last two decimal places.

In forex trading, a "handle" refers to the whole number part of a currency pair's price, excluding the decimal. For example, if the EUR/USD is trading at 1.1035, the handle is 1.10. Handles are important in technical and psychological analysis as they indicate key price levels traders often watch closely. Large round numbers, such as 1.10 or 1.00 in EUR/USD, are seen as psychological barriers because traders tend to place buy or sell orders near these levels. Handles can also signal market sentiment shifts or potential support and resistance levels. Understanding how handles affect trader behavior can help improve decision-making and risk management in forex, as price movements around these levels are often significant.