Big Figure Quote

In forex, the term “Big Figure Quote” refers to the whole number part of a currency pair’s price quote. It represents the first two or three digits of the price quote, depending on the decimal precision used by the broker. The Big Figure Quote is typically separated from the decimal fraction by a dot or a comma.

For example, let’s consider the EUR/USD currency pair with a price quote of 1.2350. In this case, the Big Figure Quote is “1.23” as it represents the whole number part of the quote. The decimal fraction “50” represents the pips or sub-pips movement.

The Big Figure Quote is important in forex trading as it helps traders to understand the overall price level of a currency pair. It provides a reference point for analyzing price movements and making trading decisions.

Traders often use the Big Figure Quote to identify key support and resistance levels on price charts. These levels are psychological barriers for traders, and price tends to react when approaching or crossing these levels. For example, if the EUR/USD pair is trading near the Big Figure of 1.2000, traders may expect increased buying or selling pressure as the price approaches this level.

Moreover, the Big Figure Quote is useful for setting stop loss and take profit levels. Traders often place their stop loss orders just below or above the Big Figure to protect their positions from adverse price movements. Similarly, take profit orders can be set near the Big Figure to secure profits before price reversals occur.

It’s important to note that while the Big Figure Quote can act as a significant level, it is not always a precise support or resistance level. Price movements can break through or bounce off the Big Figure, so it’s essential to use other technical analysis tools and indicators to confirm trading decisions.

In summary, the Big Figure Quote in forex represents the whole number part of a currency pair’s price quote. It helps traders understand the overall price level, identify support and resistance levels, and set stop loss and take profit orders. However, it should be used in conjunction with other analysis techniques for effective trading strategies.