In forex trading, the “big figure” refers to the first two or three digits of a currency exchange rate. These digits are often separated from the decimal point and the smaller units of measurement by a space or a comma.
For example, if the exchange rate for EUR/USD is 1.2045, the “big figure” is 1.20. Similarly, if the exchange rate for USD/JPY is 109.50, the “big figure” is 109.
The big figure is important in forex trading as it helps traders quickly identify the general price level of a currency pair. For example, if the big figure for EUR/USD is 1.20, a trader knows that the exchange rate is around the 1.20 level.
Traders may also use the big figure to set stop-loss and take-profit orders, which are orders to automatically exit a trade at a certain price level. For example, a trader may set a stop-loss order at 1.1990 for a long position in EUR/USD, which would be below the big figure of 1.20. This would help to limit potential losses in the event of a price decline.
Overall, the big figure is an important concept in forex trading that traders should be familiar with when analyzing currency exchange rates and setting trading strategies.