#TradingPairs101

Hashtag #TradingPairs101 usually refers to fundamental educational topics related to Trading Pairs in financial markets, especially in currency trading (FOREX) or cryptocurrencies. Here is a simplified explanation of this concept:

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🧠 What does Trading Pairs mean?

It is a way to display the value of one currency or asset compared to another currency or asset. In other words, it is a comparison between two assets to determine how much of one you need to obtain one unit of the other.

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🔄 Common Examples:

1. In FOREX:

• EUR/USD = 1.0850

• This means: 1 Euro = 1.0850 US Dollar.

• EUR is the base currency.

• USD is the quote currency.

2. In cryptocurrencies:

• BTC/USDT = 68,000

• This means: 1 Bitcoin = 68,000 Tether Dollar (Stablecoin).

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🧭 Types of Trading Pairs:

🔹 Major Pairs:

Such as: EUR/USD, GBP/USD, USD/JPY

🔹 Minor Pairs:

Such as: EUR/GBP, AUD/JPY

🔹 Exotic Pairs:

Such as: USD/TRY (Dollar/Turkish Lira)

🔹 Cryptocurrency Pairs:

Such as: ETH/BTC, SOL/USDT, DOGE/BNB

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⚖️ Importance of Understanding Trading Pairs:

• Helps you identify trends and analyze the market.

• Enables you to measure profit and loss accurately.

• Essential for understanding strategies like Arbitrage or Hedging.

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