#TradingPairs101

Pairs trading is a strategy where you simultaneously buy and sell two assets that are usually highly correlated but have temporarily diverged in price, anticipating their eventual convergence. The core idea is to profit from the difference in price between the two assets as they return to their historical norm. This strategy is used in various markets, including forex and options, and relies on the assumption that if two assets are usually closely linked, a temporary deviation will be corrected.