#TradingPairs101

Trading pairs (like EUR/USD) represent the comparison of the value of two currencies in the forex market and cryptocurrencies.

* **Base Currency (First):** The currency you buy or sell.

* **Quote Currency (Second):** The currency in which the trade is priced.

The price of the pair (like 1.10 for EUR/USD) means you need 1.10 dollars to buy 1 euro.

**How do you profit?**

1. **Buy (Long):** If you expect the value of the base currency to rise against the quote currency.

2. **Sell (Short):** If you expect the value of the base currency to fall against the quote currency.

Profit/Loss is calculated from the price difference, with consideration of **high risks** due to volatility and leverage. Understanding the basics of analysis (technical/fundamental) and risk management is essential before starting.