How does PHP handle floating point precision and what potential pitfalls should be aware of?

PHP uses floating-point numbers to represent decimal numbers. However, due to the way floating-point numbers are stored in memory, there can be precision loss when performing calculations. To avoid potential pitfalls, it is recommended to use the PHP `number_format()` function to format floating-point numbers to a specified number of decimal places.

$number = 10.123456789;
$formatted_number = number_format($number, 2); // Rounds to 2 decimal places
echo $formatted_number; // Output: 10.12