What is a "Currency Pair"? And why is it important in the trading world?
"Currency Pair" is a fundamental term in the forex market and digital currencies. Simply put, it is a comparison between two currencies, one being sold and the other being bought.
Example: In the ETH/USDT pair, you are buying or selling Ethereum against Tether (the digital dollar).
Types of Currency Pairs:
Major: Such as BTC/USDT or EUR/USD, which are the most traded.
Minor: Strong currencies but less traded, such as ETH/BTC.
Exotic: Includes currencies from emerging countries against major currencies.
Why is it important to know the pair?
Because understanding the pair gives you a clearer view of market movements and helps you identify the best entry and exit opportunities.
Advice for beginners:
Do not enter any trade before understanding the pair you are trading, and always monitor the impact of news on the base and quote currency.