#TradingPairs101 In the context of trading, a "pair" refers to two assets that are traded against each other in the financial markets.  The term is most often used in forex (currency) and cryptocurrency trading, but can also be applied to other assets. 

Here's a more detailed explanation:

Forex Trading:

In forex trading, a "pair" is a pair of currencies being traded, such as EUR/USD (Euro/US Dollar) or GBP/JPY (Pound Sterling/Japanese Yen).  When you buy or sell a currency pair, you are actually trading on the change in the exchange rate between the two currencies. 

Cryptocurrency Trading:

In cryptocurrency trading, a "pair" is a combination of two digital assets being traded, such as BTC/ETH (Bitcoin/Ethereum) or ETH/USD (Ethereum/US Dollar).  You can use one digital asset to buy another digital asset, or with fiat currency (such as dollars, euros, or rupiah). 

Pairs Trading:

This is an investment strategy that focuses on the price differences between two similar securities. Traders will look for opportunities when the prices of the two securities deviate from their historical averages, and then bet on a reversal of the price comparison.

Examples of Pair Types in Forex:

Major Pair: A currency pair involving major currencies, such as USD, EUR, GBP, and JPY. Major pairs are usually very liquid and volatile.

Cross Pair: A currency pair that does not involve the USD, such as EUR/GBP or EUR/JPY.

Exotic Pair: A currency pair involving currencies from countries with less strong or less liquid economies.