Sunday, June 28, 2015

What Is a Handle?



As an avid viewer of CNBC and reader of CNBC articles you will run across the term handle. Handle is a term used by traders to indicate the part of the stock quote before the decimal. If a stock is trading at $43.79 the handle of the stock is 43. You will commonly hear handle used with a price prediction in terms of a stock price moving a certain amount of handles, or a stock reaching a specific handle in the future. ie. "I expect apple to move two handles to the upside to trade at a 134 handle" ie. "yahoo is trading at 50 and I expect it to trade at a 56 handle by the end of the year."

Also, "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."  ( http://www.investopedia.com/terms/h/handle.asp#ixzz3eOO1UxvR )