In the trading world, especially in currency and cryptocurrency markets, the term "Trading Pairs" refers to two financial assets that are exchanged for each other.
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🧾 What does Trading Pair mean?
A trading pair is simply a comparison between two financial assets, where one is bought and the other is sold.
When trading, you are not just buying one currency, but you are exchanging it for another.
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🔁 Types of Trading Pairs
1. In the Forex Market (traditional currencies):
Examples:
Pair Meaning
EUR/USD Buying euros against selling dollars
USD/JPY Buying dollars against selling yen
GBP/USD Buying British pounds against dollars
🔹 In the EUR/USD Pair:
If you buy, you are betting that the euro will rise against the dollar.
If you sell, you are betting that the dollar will rise against the euro.
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2. In the Cryptocurrency Market (Crypto):
Examples:
Pair Meaning
BTC/USDT Buying Bitcoin using Tether (stablecoin)
ETH/BTC Buying Ethereum using Bitcoin
SOL/USDC Buying Solana using USDC (stablecoin)
🔸 In the BTC/USDT Pair:
If you buy, you are purchasing Bitcoin using Tether.
If you sell, you are selling Bitcoin to get Tether.
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