#TradingPairs101

**Trading Pairs 101: Mastering the Basics**

Trading pairs (or currency/crypto pairs) represent the relative value of one asset against another. For example, **EUR/USD** shows how many US dollars (USD) one euro (EUR) can buy. Understanding pairs is key to forex and crypto trading.

### **How Trading Pairs Work:**

- **Base Currency** (First in the pair) – The asset you’re buying or selling.

- **Quote Currency** (Second in the pair) – The asset used to price the base.

- **Example:** In **BTC/USD**, if BTC = $30,000, buying 1 BTC costs $30,000.

### **Types of Pairs:**

✔ **Major Pairs (Forex)** – Highly liquid (e.g., EUR/USD, USD/JPY).

✔ **Exotic Pairs** – Less liquid, higher spreads (e.g., USD/TRY).

✔ **Crypto Pairs** – Traded against USD (BTC/USD) or other cryptos (ETH/BTC).

### **Why It Matters:**

- **Liquidity & Volatility** – Majors move smoothly; exotics can be unpredictable.

- **Correlations** – Some pairs move together (e.g., AUD/USD & gold).

- **Strategy Fit** – Choose pairs that match your risk tolerance and trading style.

Mastering trading pairs helps you make smarter entries and exits! 🚀