"Trading pairs 101" in the context of trading (especially Forex or Crypto) refers to the basic understanding of how currency pairs or crypto assets function in trading. This means understanding how two currencies or crypto assets are exchanged for one another, as in the example EUR/USD (Euro against USD) or BTC/USDT (Bitcoin against Tether).
More specifically, "trading pairs 101" includes:
What is a trading pair:
A currency pair or crypto asset that shows the relative value between the two assets. For example, EUR/USD shows the value of the Euro against the USD.
How trading pairs work:
When you buy EUR/USD, you are effectively buying Euros using USD, and vice versa.
Why trading pairs are important:
Trading pairs allow you to directly exchange between assets without needing to go through fiat currencies (like USD).
Examples of trading pairs:
EUR/USD, GBP/USD, BTC/USDT, ETH/BTC, etc.
Types of trading pairs:
There are major, minor, and exotic currency pairs, as well as crypto assets paired with stablecoins or major currencies.
Choosing trading pairs:
Choosing trading pairs should be based on trading strategy, volatility, and asset liquidity.
In simple terms, "trading pairs 101" is an introduction to understanding the basics of trading using asset pairs, which is important for understanding how to invest or transact in the market.
