#TradingPairs101
What Is a Trading Pair?
A trading pair shows how one asset is priced against another. It’s what you’re using to trade one asset for another.
Example:
BTC/USDT → You’re trading Bitcoin for Tether.
EUR/USD → You’re trading Euros for U.S. Dollars.
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📊 How to Read a Trading Pair
The first currency (base) is what you're buying/selling.
The second currency (quote) is what you're using to pay or receive.
Example:
In ETH/BTC, you’re buying Ethereum using Bitcoin.
If ETH/BTC = 0.065, it means 1 ETH = 0.065 BTC.
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💡 Key Concepts in #TradingPairs101
Base vs. Quote Currency
Direct vs. Cross Pairs
Price Movement: If a pair's price goes up, the base is strengthening against the quote.
Liquidity: Popular pairs (like BTC/USDT or EUR/USD) have higher trading volume.
Spreads: The difference between buy and sell prices—smaller spread usually means better liquidity.
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📈 Common Trading Pair Types
Market Example Pairs
Forex EUR/USD, GBP/JPY
Stocks Not traditional "pairs", but can include pairs trading strategies (e.g., long Apple/short Microsoft)
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