How to read a trading pair
In BTC/EUR, bitcoin is the base asset and the euro is the quote asset. A price of 60,000 means that one bitcoin costs 60,000 euros, and buying the pair means buying bitcoin and paying in euros.
Quantities are stated in the base asset and prices in the quote asset. The exchange fixes a set of parameters for each pair:
- Tick size: the smallest price step
- Lot size: the smallest quantity step
- Minimum order value
- Fee schedule and price bands
- Status: trading, halted or delisted
Why the choice of pairs matters to an exchange
Every pair splits liquidity: ten pairs for one asset mean ten thinner order books. New venues therefore tend to start with few quote assets, such as one or two currencies and a major stablecoin, and add pairs when market makers will support them.
An asset with no direct pair is reached in two trades through a common quote asset, paying the spread and the fee twice. Some platforms hide that behind a convert button that quotes one price.
A fiat pair needs bank rails in that currency. A stablecoin pair needs only wallets, which makes it quicker to launch.
Base asset or quote asset?
- Base asset
- The asset being bought or sold, written first. Order quantities are in this asset.
- Quote asset
- The asset the price is expressed in, written second. Order values and often fees are counted in it.
Where a trading pair shows up in a platform
Modules that do the work
- Matching engineA low-latency order book for spot markets, with market makers and outside liquidity.
- Market dataLive and historical prices for crypto, stocks and FX, from the data vendors you choose.
- FXCurrency conversion with live rates, your margins and the liquidity provider you choose.