#TradingPairs101 What are trading pairs and how to properly understand them? ⚖️

A trading pair is the ratio of prices between two assets. For example, in the pair EUR/USD, the first currency (EUR) is the base, and the second (USD) is the quoted. If the price of EUR/USD = 1.10, it means that 1 euro costs 1.10 dollars.

📊 In trading, it is important to understand which currency you are buying and which you are selling. In the pair BTC/USDT — you are buying bitcoin for dollars, and if you open a short — vice versa.

🔍 The choice of the right pair depends on liquidity, volatility, and your analysis. Not all pairs are equally effective for trading — exotic pairs have higher spreads and risks.

🎯 Understanding the mechanics of trading pairs helps to better analyze price movements and avoid mistakes when opening positions.