#TradingPairs101 A trading pair is the foundation of forex trading and other financial assets. It consists of two currencies or assets that are traded against each other. For example, in the EUR/USD pair, the euro is the base currency and the US dollar is the quote currency. When you buy this pair, you are buying euros and selling dollars. The goal is to sell the pair at a higher price than the purchase price, thus making a profit. Trading pairs can be classified into majors, minors, and exotics, depending on liquidity and trading volume. Traders analyze pairs using technical and fundamental tools to predict future price movements. The choice of the right pair depends on the trading strategy and market analysis. Trading pairs are fundamental to any trading strategy, as they allow traders to take advantage of price fluctuations and manage risk effectively. Understanding how trading pairs work is essential for success in the financial market.