That is 'Handle' | Information 2019 - What is it?
The handle - part of an integer of quoted price. For example, if quoted price for a stock makes 56.25, the handle makes 56, eliminating decimal part. In the currency markets the handle belongs to part of quoted price which appears both in the offer and in the offer on currency. For example, if couple of currency of euro/US DOLLAR has an offer 1.4183 and to ask 1.4185, the handle would be 1.41 part of the quote which is equal also to the offer and to ask. The handle is also called a large figure.
2019 - Handle
Handle, Information - 2019
DESTRUCTION of 'handle' | Information 2019 - What is it?
Dealers often address to only the handle of quoted price as it is supposed that other participants of the market know a quote basis. In the currency markets the minimum dynamics of the prices is called a kernel. As many currency tools are specified four or five decimal categories, it consider as simpler to belong to the last two places, discussing offers and asks instead of turning on the handle which tends to be known to participants.
Handle and currency markets
The foreign currency covers the huge range of transactions: in total from transformations of currency by the traveler in a booth of the airport to the international payments of one billion dollars which are carried out by corporations, financial institutions and the governments. Certain examples include financing of import and export, and also speculative investment provisions without the main goods or services. The increase in globalization corresponded to significant growth among currency transactions.
Among the expansive global currency market the markets of cash goods and the forward markets are very important for the term the handle. The markets of cash goods - the markets for financial instruments, such as consumer goods and securities which can be sold immediately or on a place. The markets of cash goods rely on the cash prices or the current market prices. It costs unlike the market of forwards which works with the prices later. In both cases it is important that participants of these markets understand the handle and a basis of their quoted prices.
The markets of cash goods can be organized exchanges or or the off-exchange (OTC) markets. Though the current exchange rate - the earliest date of transfer of payment, in general, standard payday for two working days later after date of transaction. Some exceptions exist, including transactions for crude oil. In this case goods are sold at the cash prices, but physical delivery happens in later date.
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