#TradingPairs101

#TradingPairs101

Trading pairs are assets that can be exchanged for each other in financial markets, especially in the currency or cryptocurrency market. Each pair consists of two assets: the base asset and the quote asset, such as BTC/USDT, where Bitcoin is bought or sold against Tether. Understanding trading pairs is essential for determining the value of one asset compared to another. There are major pairs (like EUR/USD) and minor or exotic pairs. In cryptocurrencies, pairs like ETH/BTC provide flexibility in converting between currencies. Choosing the right pair depends on liquidity, the price spread, and trading fees. Each pair reflects independent supply and demand, creating opportunities for speculation or hedging. Risk management begins with understanding the trading pair being used.