# Understanding Handles in Price Quotes: Definitions and Examples

## What Is a Handle?

The term "handle" refers to the portion of a [price quote](https://www.investopedia.com/terms/q/quoted-price.asp) for securities that is a whole number. For instance, the handle of a price quote of $149.25 for a stock is $149. It's used with a slight variation in the [forex market](https://www.investopedia.com/terms/forex/f/foreign-exchange-markets.asp). That is, for [currency pair](https://www.investopedia.com/terms/c/currencypair.asp) quotes, the handle is the portion of the price that is the same for the bid and the ask. For example, where the bid is 1.17742 and the ask is 1.17758, the handle is 1.17. The handle gives traders a quick understanding of where the market stands for various securities. The term "stem" refers to the portion of a stock quote that is to the right of the decimal point.

### Key Takeaways

*   A handle is a trading term that signifies the whole number part of a price quote, often used in futures and equities markets to quickly communicate the general price level.
*   In forex markets, the handle represents the shared portion of a price quote in both bid and offer, and is crucial for traders to understand during transactions.
*   The decimal part of a price is known as the "stem" or "dollar price," and is usually assumed to be known by traders, allowing them to refer shorthand to the handle for quick decision-making.
*   Handles, also called big figures, are especially relevant in fast-moving markets, assisting traders in swiftly recognizing changes in price levels without focusing on fractional details.
*   Understanding handles can be beneficial in various markets, including spot and forward markets, where quick comprehension of price quotes is essential for effective trading.

## Understanding the Role of Handles in Trading

In futures and stocks, handles are often called the [big figure](https://www.investopedia.com/terms/b/bigfigure.asp) or big fig.

> **Important**
>
> The decimal or fractional part of the price is sometimes referred to as the dollar price or the "stem."

Traders often refer to only the handle because it's assumed that market participants know the stem. For example, if S&P 500 futures are trading at $2885.43, the handle could be conveyed simply as 2885, or shortened to just the 85 handle. If the price drops to $2875.90, a trader may say that the index has dropped ten handles.

In forex markets, the smallest price move is called a [pip](https://www.investopedia.com/terms/p/pip.asp). Forex prices often extend four or five decimal places to the right, and traders usually refer only to the last two of those figures.

## How Handles Operate in the Forex Markets

[Foreign exchange](https://www.investopedia.com/terms/f/foreign-exchange.asp) encompasses an enormous range of transactions: everything from currency conversions by a traveler at an airport kiosk to billion-dollar international payments made by corporations, financial institutions, and governments. Specific examples include the financing of imports and exports, as well as speculative investment positions with no underlying goods or services. Increasing globalization has corresponded with a significant uptick in the number of foreign exchange transactions.

Amid the expansive global foreign exchange market, [spot markets](https://www.investopedia.com/terms/s/spotmarket.asp) and [forward markets](https://www.investopedia.com/terms/f/forwardmarket.asp) frequently use the term handle. Spot markets involve commodities and securities traded at current prices. This stands in contrast with the forwards market, which works with prices at a later date. In both cases, participants in these markets must understand the handle and stem of their price quotes.

Spot markets may be organized exchanges or [over-the-counter (OTC)](https://www.investopedia.com/terms/o/otc.asp) markets. Although the spot exchange rate is the earliest value date, in general, the standard [settlement date](https://www.investopedia.com/terms/s/settlementdate.asp) for is two business days after the transaction date. Some exceptions exist, including transactions for crude oil. In this case, goods are sold at spot prices, but the physical delivery happens on a later date.

## What Are Other Names for the Handle in Trading?

When trading futures or equities, the "handle" refers to the whole dollar part of the asset's price, found to the left of the decimal. This is also called the whole dollar value, the big figure, or the big fig.

## When Is the Handle Used?

The handle, or big figure, is usually only quoted by traders when prices are changing quickly or reaching new levels. It is used to simplify and clarify the price being discussed. Retail investors will almost always see the entire price of an asset, not just the handle.

## Are Handles and Pips the Same Thing?

A handle and a pip are different things in forex trading. The handle is the part of the price quote that is the same in both the bid and the ask. A pip is the minimum price movement in forex markets, usually the fourth decimal place (0.0001). "Pip" is short for percentage in points, and the bid-ask spread of a forex quote is generally measured in pips.

## The Bottom Line

A "handle" is a term used by traders, often in the futures and equities markets. It is also called the "big figure" or "big fig."For stocks, it refers to the part of a price quote to the left of the decimal point—for example, $28 in a price of $28.65. The decimal portion of the price is called the stem. In trading, the handle helps traders quickly convey and understand the general price level of securities. In forex trading, the handle is the portion of the full price that is the same for the bid and the ask.