#TradingPairs101

Understanding Trading Pairs

Trading pairs are two assets traded against each other, showing how much of one is needed to buy the other. Common in forex and crypto markets, examples include **EUR/USD** (euro vs. U.S. dollar) or **BTC/ETH** (Bitcoin vs. Ethereum). The first asset is the **base currency**, and the second is the **quote currency**. Prices indicate how much of the quote currency is needed to buy one unit of the base. Traders profit by predicting the direction a pair will move. Choosing the right trading pair depends on market trends, volatility, and the trader’s familiarity with the assets involved.