What Is a Handle in Trading?

A “handle” in trading is a commonly used, informal term that simplifies communication about asset prices in financial markets. It represents a specific portion of a security’s price quote, allowing traders to convey price information quickly and efficiently, especially in fast-paced trading environments.

Defining the Handle

The handle refers to the whole number portion of an asset’s price, to the left of the decimal point. For example, if a stock is priced at $150.25, the handle is 150. This whole number is also called the “big figure” or “big fig” among traders. The digits following the decimal point are often called the “stem” or the fractional part, which traders often assume their counterparts know.

In foreign exchange (forex) markets, the handle has a slight nuance. It signifies the consistent part of the price quote across both bid and ask prices for a currency pair. For instance, if the EUR/USD currency pair has a bid of 1.0850 and an ask of 1.0852, the handle would be 1.08. This distinction acknowledges the multiple decimal places in currency quotes, where traders might focus on the smaller price movements, or “pips,” after the common handle.

Usage and Context

Traders use the handle for rapid, clear communication, especially in dynamic markets or on trading floors. It helps articulate price changes without repeatedly stating the entire, often lengthy, price quote. This is useful when prices fluctuate quickly or cross significant psychological levels.

The handle serves as a verbal shortcut across asset classes like stocks, commodities, and currencies. When a trader mentions a price “hitting the 50 handle,” it conveys the asset reached a price around 50, such as $50.00, $50.10, or $50.95. This streamlines dialogue, enabling participants to focus on smaller, more volatile price movements. Its application extends to both spot and forward markets, where understanding these components is important for effective trading.

Illustrative Examples

Consider a stock trading at $78.60. The handle for the stock is $78. If the stock’s price moves to $79.15, a trader might say the stock “crossed the 79 handle.” This indicates a movement past the previous whole dollar mark.

For a commodity like crude oil, quoted at $85.30 per barrel, the handle would be $85. A price advance to $86.05 would be described as reaching the “86 handle.” In the context of a currency pair, such as USD/JPY quoted at 145.25, the handle is 145. If the price shifts to 146.05, a trader might note it moved “up to the 146 handle,” signifying a move of one full unit.