In forex trading, 'handle' refers to the part of the quote that appears in both the bid price and ask price. For example, if a currency pair can be bought for 1.6456 and sold for 1.6400, then its handle is 1.64. Handles are especially relevant to spot and forward forex markets.
Handle definition
In most markets, it means the whole numbers involved in a quote price, without the decimals included.
It is the portion of the quote to the left of the decimal point. For example, if a stock is trading at $82.49, its handle is just $82. In the stock market, a handle is also known as the “big figure” or “big fig“.
Definition of 'Handle'
When trading something like the S&P500 equity index future a trader might say that he made 4 handles in the trade. This means that he made 4 points. Compare this to a tick which is smallest unit of change in the future being traded.
For example, a price change of $28.65 to $38.24 would be a gain of 10 handles. In forex markets, handle means something different. It refers to both the part of the price that appears on both sides of a two-way quote. This could be both the whole number and all or part of the fractional number.
Every 100 pips in the FX market starting with 000.
While 1 lot represents a transaction of 100,000 units of the currency mentioned first in a currency pair, the value of 1 micro lot is 1,000 units. If you are interested in the relationship between lots, micro-lots, leverage, and margin, we recommend reading the article about micro-lots we wrote on the subject.
a part of an object designed for holding, moving, or carrying the object easily: a door handle.
The term "handle" dates back to the 1970s and comes from Citizens Band radio (CB radio), a short-distance radio communications medium. CB radio users would identify themselves by unique nicknames, which became known as handles.
Ticks are the smallest price movements in the financial markets. For example, if the price of a stock moves from $50.00 to $50.01, that one-cent change is a tick. In trading, ticks affect how you buy and sell securities by helping you understand the smallest price change that can happen.
Usually just shorthand for the number before the decimal when talking about investing or money stuff. Like, you might say 'back when my mortgage had a 3 handle' - ie: was in the 3%-4% range. Or, 'I bought that stock at a 10 handle' - instead of 'my average purchase price was $10.32'
The best forex pairs to trade are usually those with the most trade volume – and therefore liquidity. According to the most recent Bank of International Settlements (BIS) Triennial Survey in 2022 , these pairs are: EUR/USD. USD/JPY.
The foreign exchange market is decentralised and there is no organisation that controls it. However, commercial banks act as market makers, and central banks have significant powers and can influence the market. Generally, the FX market is too big for one particular participant to control.
So, with a $10 account, you should trade 0.1 micro lots to stay within the 1% risk rule. Based on the above calculation, micro lots (0.01 standard lots) or even nano lots (0.001 standard lots) are the most suitable for a $10 account.
In that case, a 0.01 lot is equivalent to 1,000 U.S. dollars. Currency trading is similar to stock trading in that you need a plan to determine what you're trading and how much you're willing to risk.
One hundred units of US30 would have a pip value of $1. In indices like US30, the broker sets the contract size on the trading platform.
Single-handle faucets have one handle that mixes hot and cold water. Hot and cold water each have a dedicated handle in double-handle faucets. Single faucets look modern, while double faucets are more traditional. Single-handle faucets are best for small sinks and help save space.
In forex trading, 'handle' refers to the part of the quote that appears in both the bid price and ask price. For example, if a currency pair can be bought for 1.6456 and sold for 1.6400, then its handle is 1.64.
For instance, if the EUR/USD exchange rate moves from 1.2000 to 1.2100, it is said to have moved 100 pips or one handle higher.
The pip value is $1. If you bought 10,000 euros against the dollar at 1.0801 and sold at 1.0811, you'd make a profit of 10 pips or $10.
Is 100 pips a lot? Lots are measured in units of currency, not by pips (i.e., how the exchange rate moves between the currency pair). A lot is 100,000 units.
One standard lot is typically 100,000 currency units of account base currency. There are smaller lot sizes, including mini (0.1 of a standard lot or 10,000 units), micro (0.01 of a standard lot or 1,000 units), and nano (0.001 of a standard lot or 100 units).