#TradingPairs101 Pair trading is an investment strategy that involves buying one asset and simultaneously selling another related asset, with the aim of benefiting from the difference in behavior between the two. This technique is based on the historical correlation between the assets, which usually belong to the same sector or industry. When one of the assets is overvalued compared to the other, the trader expects the prices to converge again. It is a market-neutral strategy, as it does not depend on the overall direction of the market. Its success requires technical analysis, statistical analysis, and proper risk management to maximize gains and minimize losses.