Community Forex Questions
What is a handle in trading?
Depending on which market you are referring to, the term "handle" has two meanings in trading. In most markets, it refers to the whole numbers in a quote price, excluding the decimals. It refers to the part of the quote that appears in both the buy and sell price in forex.
The handle is a more concise way of referring to the price of an asset at a specific point in time. For example, if a stock is currently trading at $46.24, the handle is only $46.
The handle is a more concise way of referring to the price of an asset at a specific point in time. For example, if a stock is currently trading at $46.24, the handle is only $46.
In trading, a "handle" refers to the whole number part of a price quote, disregarding the fractional part. For example, if a stock is priced at $56.75, the handle is $56. It simplifies communication among traders, especially in fast-paced environments. Handles are particularly useful in discussing large price movements or setting psychological benchmarks. In the Forex market, a handle can also represent the first few digits of an exchange rate, such as 1.12 in the EUR/USD pair at 1.1234. Using handles helps traders quickly grasp and convey key price levels and trends without needing to specify exact figures.
Sep 09, 2022 06:21