#TradingPairs101 cies, assets, or instruments traded against each other. In forex, a currency pair represents the exchange rate between two currencies, like USD/JPY, where USD is the base currency and JPY is the quote currency. In other contexts, like crypto trading, a pair might be Bitcoin/Ethereum (BTC/ETH), showing how much ETH you get for one BTC. Pairs trading, a strategy, involves buying one asset and shorting another, anticipating convergence after a divergence.