#TradingPairs101 Trading Pair

A trading pair is a fundamental concept in the world of trading, whether in forex, stocks, or crypto markets. It simply refers to two assets that are traded against each other. The first asset is called the base currency, and the second is the quote currency. For instance, in BTC/USDT, Bitcoin (BTC) is the base asset, and Tether (USDT) is the quote asset, indicating how much USDT is needed to buy one BTC. Its primary function is to establish the relative exchange rate and facilitate transactions between the two assets. Understanding trading pairs is crucial for market analysis.