In crypto trading, a trading pair refers to the two cryptocurrencies that are being traded with each other on a specific trading platform. For example, Bitcoin (BTC) and Ethereum (ETH) could be a trading pair, and the price of Ethereum would be denominated in Bitcoin.
When a trader wants to buy or sell a cryptocurrency on a trading platform, they must choose a trading pair to execute the trade. The trading pair will determine the price at which the trade is executed, as well as the fees that the trader will pay.
Some trading platforms offer a wide range of trading pairs, while others may only offer a few. Traders should be aware that not all trading pairs are created equal, and some may be more liquid than others, meaning that there are more buyers and sellers and it may be easier to execute trades at favorable prices.
Trading pairs are often denoted by a forward slash (/) or hyphen (-) between the two cryptocurrencies. For example, BTC/ETH or BTC-ETH would be a trading pair consisting of Bitcoin and Ethereum.