#TradingPairs101

Understanding Trading Pairs: #TradingPairs101

A trading pair consists of two currencies or assets, where one is exchanged for the other. For example, in the pair EUR/USD, the euro (base currency) is bought or sold for US dollars (quote currency). The first currency always indicates how many units of the second currency are needed to purchase one unit of the first. Understanding trading pairs is critically important for understanding quotes and successful trading in any market.