Giles Coghlan LLB, Lth, MA
Financial Source
It is a well known behavioural fact that humans have a round number bias. We just like round numbers. During a visit to the gym recently keeping the RPM’s over 100 was a keen aim. If the RPM’s dropped under 100 something psychologically kicked in to give an extra push in order to hit the ‘big round number’.
This phenomena turns up all over the place. Look at the London Marathon finishing times and how they cluster around the big round numbers of 3 hours, 3:30 hours, and 4 hours.
Most of us are very familiar with pricing that keeps under a big round number. Most goods for about £3 will be priced as £2.99. Staying clear fo the ‘£3’ label, even by a penny, means more sales will be encouraged.
Humans love big round numbers as key reference points. You will have noticed this yourself when you say ‘I will close my position when my equity hits £10,000’ or ‘I will sell the stock when it reaches $100’. This means that traders need to be aware of this impact when trading.
The big round number effect
Whenever you are trading, this has a number of implications for placing orders.
For limit orders: Place buy or sell limit orders at, or near, big round numbers.
For a take profit : Place your TP just a few points BELOW a big round number
For a stop loss: Place your SL just a few points BELOW a big round number.
Also, keep a careful eye out for how big round numbers act as key support and resistance numbers. You will see how influential they are.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Editors’ Picks
EUR/USD holds steady above 1.1750 as traders await FOMC Minutes
The EUR/USD pair holds steady near 1.1770 during the early Asian session on Tuesday. Traders continue to price in the prospect of further rate cuts by the US Federal Reserve in 2026, following the 25-basis-point rate reduction delivered at the December meeting. The release of the Federal Open Market Committee Minutes will be in the spotlight later on Tuesday.
GBP/USD retreats below 1.3500 as trading conditions remain thin
GBP/USD corrects lower after posting strong gains in the previous week and trades below 1.3500 on Monday. With the action in financial markets turning subdued following the Christmas holiday, however, the pair's losses remain limited.
USD/JPY stalls as Yentervention risk weighs
USD/JPY reversed course to open the final week of the trading year, falling back to the 156.00 region and paring off last week’s late burst of bullish momentum. General volatility is expected to widen during the last trading week of 2025, and follow into early 2026 as holiday-thinned market volumes wreak havoc on general market trends.
Editors’ Picks
AUD/USD struggles to reconquer the 0.6700 mark
The AUD/USD pair trades just below 0.6700 in the Asian session on Tuesday, trying to regain some ground after falling at the beginning of the week. The US Dollar benefited from a dismal mood, with a sell-off in tech shares leading an otherwise slow session.
USD/JPY stalls as Yentervention risk weighs
USD/JPY reversed course to open the final week of the trading year, falling back to the 156.00 region and paring off last week’s late burst of bullish momentum. General volatility is expected to widen during the last trading week of 2025, and follow into early 2026 as holiday-thinned market volumes wreak havoc on general market trends.
Gold holds above $4,300 after setting yet another record high
Spot Gold traded as high as $4,550 a troy ounce on Monday, fueled by persistent US Dollar weakness and a dismal mood. The XAU/USD pair was hit sharply by profit-taking during US trading hours and retreated towards $4,300, where buyers reappeared.
Ethereum: BitMine continues accumulation, begins staking ETH holdings
Ethereum treasury firm BitMine Immersion continued its ETH buying spree despite the seasonal holiday market slowdown. The company acquired 44,463 ETH last week, pushing its total holdings to 4.11 million ETH or 3.41% of Ethereum's circulating supply, according to a statement on Monday. That figure is over 50% lower than the amount it purchased the previous week.
Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026
Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.
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