#TradingPairs101
Trading Pairs (Trading Pairs 101) - Beginner's Guide 📊
In the trading world, you don't necessarily buy assets for cash, but rather trade them for other assets! This is the concept of trading pairs.
🔹 How does it work?
Each pair consists of:
- Base Asset: What you want to buy
- Quote Asset: What you pay to make the purchase
Example: BTC/USD means you are buying Bitcoin with US dollars.
🔹 Main types of pairs:
1. Currency Pairs: like EUR/USD
2. Cryptocurrency Pairs: like BTC/ETH
3. Commodity Pairs: like XAU/USD (gold against the dollar)
🔹 Why are pairs important?
✅ They allow comparison of asset values
✅ They provide opportunities for hedging and arbitrage
✅ They reflect the strength or weakness of one asset against another
💡 Tip: Start with highly liquid pairs like BTC/USD or EUR/USD to avoid sharp volatility!
