#TradingPairs101
In trading, a pair consists of two assets traded against each other. Understanding trading pairs is essential for navigating financial markets.
- *Currency Pairs (Forex)*: Examples include EUR/USD and USD/JPY, where one currency is exchanged for another.
- *Cryptocurrency Pairs*: Examples include BTC/USDT and ETH/BTC, where one cryptocurrency is traded for another or a stablecoin.
- *Stock Pairs*: Investors may trade pairs of stocks, such as Coca-Cola vs. Pepsi, to capitalize on relative performance.
Trading pairs allow market participants to speculate on price movements, hedge positions, or exploit market inefficiencies. Each pair has its unique characteristics and market dynamics.