The trading pair represents two different currencies that can be traded in the foreign exchange market (forex). A trading pair is always quoted to show the value of one currency against another.

Example: The EUR/USD pair (euro/USD) means you are buying or selling euros against the US dollar. The first currency (EUR) is the base currency, and the second (USD) is the quote currency. When you trade this pair, you are expecting either an increase or a decrease in the value of the euro compared to the dollar.

Trading pairs are affected by economic factors, geopolitical events, and differences in interest rates between the two countries. Understanding these dynamics is essential for traders.