#TradingPairs101 #TradingPairs101: Key Pairs Introduction (Brief)
In trading, especially in forex and cryptocurrency markets, a trading pair represents two different currencies or assets that can be traded against each other.
What Are Trading Pairs?
A trading pair shows the relative value between two assets.
It tells you how much of the quote currency you need to buy one unit of the base currency.
Structure of a Trading Pair
Format:
BASE / QUOTE
Base currency: The first currency in the pair (the asset you want to buy or sell).
Quote currency: The second currency (the currency you use to price the base currency).
Example:
BTC/USD = Bitcoin (BTC) priced in US Dollars (USD).
If BTC/USD = 30,000, it means 1 BTC = 30,000 USD.
Common Key Trading Pairs
Forex (Currency Pairs)
EUR/USD – Euro / US Dollar (most traded forex pair)
USD/JPY – US Dollar / Japanese Yen
GBP/USD – British Pound / US Dollar
USD/CHF – US Dollar / Swiss Franc
Cryptocurrency Pairs
BTC/USDT – Bitcoin / Tether (stablecoin)
ETH/USDT – Ethereum / Tether
BNB/USDT – Binance Coin / Tether
Why Trading Pairs Matter
They enable traders to exchange one asset for another.
Help determine market prices and liquidity.
Influence trading strategies and risk management.
