Handle

What is a ‘handle’ in trading?

In trading, a handle is the whole number part of a price quote, disregarding the decimal. For example, if a quote for a stock is £78.42, the handle will be £78.

Traders often refer only to the handle of a price quote, as it is assumed that the other market participants know the remaining digits of the quote.

The handle in foreign exchange markets

In currency exchanges, the handle is the part of the price that is the same for both the bid and the offer. For instance, if in a GBP/EUR currency pair the bid is at 1.3118 and the ask is at 1.3121, the handle would be 1.31. This is often known as the “big figure” or “big fig” on foreign exchange markets.

Since many of the foreign exchange instruments are quoted out four or five decimal places, it is simpler to refer to the last two places when discussing the bids and asks, rather than include the handle, which tends to be known by the participants.

Related Articles:

 

Category: Financial Glossary

From time to time we may tell you about regulated products issued by Southbank Investment Research Limited. With these products your capital is at risk. You can lose some or all of your investment, so never risk more than you can afford to lose. Seek independent advice if you are unsure of the suitability of any investment. Southbank Investment Research Limited is authorised and regulated by the Financial Conduct Authority. FCA No 706697. https://register.fca.org.uk/.

© 2021 Southbank Investment Research Ltd. Registered in England and Wales No 9539630. VAT No GB629 7287 94.
Registered Office: 2nd Floor, Crowne House, 56-58 Southwark Street, London, SE1 1UN.

Terms and conditions | Privacy Policy | Cookie Policy | FAQ | Contact Us | Top ↑