#TradingPairs101

A trading pair in financial markets refers to two different currencies or assets that can be traded against each other. It shows how much of one currency you need to buy one unit of the other. For example, in the trading pair BTC/USD, Bitcoin (BTC) is traded against the US Dollar (USD). The price reflects how many USD it takes to buy one BTC.

Trading pairs are essential in cryptocurrency, forex, and stock markets because they provide the basis for exchanging one asset for another. Common types of trading pairs include:

Base currency: The first currency in the pair (e.g., BTC in BTC/USD).

Quote currency: The second currency, used to value the base currency (e.g., USD in BTC/USD).

Understanding trading pairs helps traders know what they are buying and selling, manage risk, and navigate different markets efficiently.