What is Handle?
1114 reads · Last updated: December 5, 2024
A handle is the whole number part of a price quote, that is, the portion of the quote to the left of the decimal point. For example, if the price quote for the stock is $56.25, the handle is $56, eliminating the value of cents in the quote. Handles are often used in futures and equities markets, where they are also known as the big figure, or "big fig".In foreign exchange markets, the handle refers to the part of the price quote that appears in both the bid and the offer for the currency. For example, if the EUR/USD currency pair has a bid of 1.4183 and an ask of 1.4185, the handle would be 1.41 – the part of the quote that is equal to both the bid and the ask.
Definition
The price integer part refers to the whole number portion of a quote, which is the part to the left of the decimal point. For example, if a stock is quoted at $56.25, the price integer part is $56, excluding the decimal value. This term is often used in futures and stock markets and is also known as the 'big figure' or 'big fig.' In the forex market, the price integer part refers to the portion of the quote that appears in both the bid and ask prices. For instance, if the EUR/USD currency pair has a bid price of 1.4183 and an ask price of 1.4185, the price integer part is 1.41, which is the part common to both the bid and ask prices.
Origin
The concept of the price integer part originated from the quoting systems in financial markets, especially before the advent of electronic trading, where traders relied on quickly identifying and processing the integer part of quotes to make trading decisions. With the digitization and globalization of markets, this concept has been widely applied in forex and futures markets.
Categories and Features
The price integer part has different applications in various markets. In the stock market, it helps investors quickly identify the basic price level of a stock. In the futures market, it is used to determine the basic value of a contract. In the forex market, it is used to identify the basic exchange rate level of a currency pair. Its main feature is to simplify quotes, enabling traders to make quick decisions.
Case Studies
Case 1: In the stock market, suppose Apple's stock is quoted at $150.75, the price integer part is $150. This integer part helps investors quickly assess the price range of the stock. Case 2: In the forex market, suppose the USD/JPY bid price is 110.25 and the ask price is 110.27, the price integer part is 110. This part helps traders quickly identify the basic level of the exchange rate.
Common Issues
Investors often misunderstand the importance of the price integer part, thinking it is merely a part of the quote, overlooking its role in quick decision-making. Additionally, investors may ignore the different applications of the price integer part in various markets, leading to incorrect market assessments.
