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A decimal data type could be implemented as either a floating-point number or as a fixed-point number. In the fixed-point case, the denominator would be set to a fixed power of ten. In the floating-point case, a variable exponent would represent the power of ten to which the mantissa of the number is multiplied.
For example, while a fixed-point representation that allocates 8 decimal digits and 2 decimal places can represent the numbers 123456.78, 8765.43, 123.00, and so on, a floating-point representation with 8 decimal digits could also represent 1.2345678, 1234567.8, 0.000012345678, 12345678000000000, and so on.
IEEE 754 specifies additional floating-point formats, including 32-bit base-2 single precision and, more recently, base-10 representations (decimal floating point). One of the first programming languages to provide floating-point data types was Fortran.
Round-to-nearest: () is set to the nearest floating-point number to . When there is a tie, the floating-point number whose last stored digit is even (also, the last digit, in binary form, is equal to 0) is used.
In practice, most floating-point systems use base two, though base ten (decimal floating point) is also common. Floating-point arithmetic operations, such as addition and division, approximate the corresponding real number arithmetic operations by rounding any result that is not a floating-point number itself to a nearby floating-point number.
Huberto M. Sierra noted in his 1956 patent "Floating Decimal Point Arithmetic Control Means for Calculator": [1] Thus under some conditions, the major portion of the significant data digits may lie beyond the capacity of the registers.
A floating-point variable can represent a wider range of numbers than a fixed-point variable of the same bit width at the cost of precision. A signed 32-bit integer variable has a maximum value of 2 31 − 1 = 2,147,483,647, whereas an IEEE 754 32-bit base-2 floating-point variable has a maximum value of (2 − 2 −23) × 2 127 ≈ 3.4028235 ...
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