#TradingPairs101

The Basics

In the world of trading, a trading pair represents the asset you are selling or buying against another. It is the foundation of every transaction. For example, in EUR/USD, the Euro (EUR) is the base currency and the US Dollar (USD) is the quote currency.

When you see a price for EUR/USD, it indicates how many USD are needed to purchase 1 EUR. Understanding trading pairs is crucial: it allows you to analyze markets and anticipate price movements, whether for currencies, cryptocurrencies, or commodities. Without this understanding, navigating trading is nearly impossible.

I hope you find this useful! Is there anything else I can help you with?