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Handle

What is a 'Handle'

A handle is the whole number part of a price quote. In a quote the handle could be $56, while the price quote for stock might be $56.25. The quote's handle eliminates the part of the price quote that is a decimal. 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. Also called big figure.

Explaining 'Handle'

Traders often refer to only the handle of a price quote since it is assumed that other market participants know the stem of the quote. In the foreign exchange markets, the minimum price movement is called a pip. Since many of the foreign exchange instruments are quoted out four or five decimal places, it is considered 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.


Further Reading


Trends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
… It is important to understand park finance, pricing policies and potential income sources so as to … park agencies are developing professional expertise in leisure pricing policy, in tourism economics, in marketing … due to the lack of budget for the agency to handle tourism pressures …

Event studies in economics and financeEvent studies in economics and finance
www.jstor.org [PDF]
… It is important to understand park finance, pricing policies and potential income sources so as to … park agencies are developing professional expertise in leisure pricing policy, in tourism economics, in marketing … due to the lack of budget for the agency to handle tourism pressures …

Corporate finance in the euromarkets and the economics of intermediationCorporate finance in the euromarkets and the economics of intermediation
ideas.repec.org [PDF]
… It is important to understand park finance, pricing policies and potential income sources so as to … park agencies are developing professional expertise in leisure pricing policy, in tourism economics, in marketing … due to the lack of budget for the agency to handle tourism pressures …

Rural finance and poverty alleviationRural finance and poverty alleviation
ideas.repec.org [PDF]
… It is important to understand park finance, pricing policies and potential income sources so as to … park agencies are developing professional expertise in leisure pricing policy, in tourism economics, in marketing … due to the lack of budget for the agency to handle tourism pressures …



Q&A About Handle


Why do people use handles in foreign exchange markets?

They use handles because many currency pairs are quoted out with four or five decimal places and traders tend to refer to only two places since it is simpler than including all four or five digits.

What is the definition of a handle?

A handle is the whole number part of a price quote. In a quote, the handle could be 56 while the price quote for stock might be 56.25. The quote's handle eliminates the part of the price quote that is a decimal.

What does it mean when someone refers to only "the handle" in foreign exchange markets?

It means that other market participants know what stem of the quote they are referring to since most currencies have four or five decimal places and traders tend to refer to only two places since it is simpler than including all four or five digits.

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