Definition

A Trading Pair represents two assets being exchanged against one another, such as BTC/USD or ETH/USDT. The first asset is known as the base currency, and the second is the quote currency.

The price of the pair reflects how much of the quote currency is required to purchase one unit of the base currency.

Example in Context

In the BTC/USD trading pair, Bitcoin is the base asset and U.S. dollars are the quote asset.

FAQs

What does the base currency represent?

The base currency is the asset being bought or sold.

What does the quote currency represent?

The quote currency is the asset used to price the base currency.

Can trading pairs affect liquidity?

Yes. Liquidity varies across different trading pairs and exchanges.

Related Terms