What are Round Numbers?

🔘 What are Round Numbers?

Round numbers are prices that end with zero. For example, in EURUSD, some round numbers are 1.2810, 1.2920, 1.3030, etc. In GBPUSD, examples include 1.5020, 1.5030, 1.5040, and so on. Historically, zero-ending prices have had a strong psychological impact on Forex traders. People tend to place orders at round (zero-ending) numbers, making these levels important support and resistance zones. This phenomenon occurs across financial markets, especially in Forex, reflecting our natural tendency to seek simplicity in actions.

 

What are Whole Numbers in Forex Trading?

Whole numbers in Forex refer to double-zero ending quotes. For example, whole numbers in EURUSD include 1.2100, 1.2200, 1.2300, and so forth. These double-zero levels play a significant role in Forex trading. Large orders are often placed just before currency pairs reach whole numbers, and volume typically surges when pairs approach these levels.

Whole Numbers Effect — An Example

Day traders pay close attention to whole numbers. For example, suppose a trader opens a long position on EURUSD at 1.2850 with a target of 1.2910. As the whole number 1.2900 approaches, the trader may not wait to reach 1.2910. Instead, they might adjust their take-profit order to 1.2898–1.2900 to secure profits if EURUSD reaches that level. If EURUSD briefly breaks above 1.2900 and continues higher, the trader might open a new position, placing a stop-loss at 1.2898.

 

 

What are Middle Numbers in Forex Trading?

Some Forex traders pay close attention not only to whole numbers but also to the middle numbers between whole numbers. For example, the middle numbers in EURUSD are 1.2050, 1.2150, 1.2250, and so on.

Example on USDJPY

Here is a MetaTrader chart of USDJPY where the whole, round, and middle numbers for that specific period are marked. It is clear that these price levels often correspond with actual resistance levels.

Chart: USDJPY

Example on JPYUSD

 

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◘ What are Round Numbers?

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