In this article, We learn about "Big Figure Quote".Let's Go!
In forex trading, a big figure quote refers to the first few digits of a currency exchange rate that are typically not displayed in quotes.
These digits are assumed to be known by traders and are not typically included in price quotes or charts.
For example, if the EUR/USD exchange rate is quoted as 1.1875, the big figure is 1.18.
The last two digits, 75, are referred to as the “points” or “pips“.
The big figure represents the most significant digits of the exchange rate, while the points or pips represent smaller increments.
Big figure quotes are important in forex trading because they can affect how traders place orders and interpret market movements.
For example, if the EUR/USD exchange rate moves from 1.1875 to 1.1895, this represents a change of 20 pips, which may be significant for short-term traders.
However, the big figure remains the same at 1.18, indicating that the overall movement is relatively small.
In addition, big figure quotes can also affect how traders place stop-loss orders.
Stop-loss orders are used to limit potential losses on a trade, and they are typically placed at a certain distance from the current market price.
Traders may choose to place their stop-loss orders just below or above a big figure, such as at 1.1790 or 1.1900, to limit their exposure to short-term price fluctuations.
In summary, a big figure quote represents the first few digits of a currency exchange rate that are typically not displayed in quotes.
These digits are significant in forex trading and can affect how traders place orders and interpret market movements.
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.