#TradingPairs101
At the heart of every trade lies a "trading pair," representing the exchange rate between two different assets.
Think of it like comparing apples to oranges: you're determining how many oranges you can get for one apple, or vice versa.
In financial markets, this concept is fundamental.
A trading pair consists of a "base currency" and a "quote currency." For example, in EUR/USD, EUR is the base, and USD is the quote.
When you see a price for EUR/USD, it indicates how many USD are needed to buy one EUR.
Understanding trading pairs is crucial for interpreting market movements and executing informed buy or sell orders across various asset classes, from forex to cryptocurrencies and stocks.
