#TradingPairs101 In trading, a "pair" refers to the simultaneous buying of one asset and selling of another. In forex, currency pairs like EUR/USD denote the euro as the base currency and the U.S. dollar as the quote currency; an exchange rate of 1.20 means 1 euro equals 1.20 dollars. In equities, pairs trading involves taking opposing positions in two correlated stocks—buying the undervalued and shorting the overvalued—anticipating their prices will converge. This market-neutral strategy aims to profit from relative price movements, regardless of overall market direction.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
5
0