Question about trading on exchanges...

I'm looking at exchanges like Poloniex, and I see pairs listed in BTC. So, does that mean that if I trade BTC/ETH, the movement is based upon what those two coins do throughout the day? In other words, are they correlated? If so, it seems possible to end up losing money even if the trade goes well. For instance:

I buy BTC/LTC at .017 and sell at .018...great, I made .001 BTC or about 5.9% profit!

However, say that while I'm sleeping, the price of BTC crashes by 10%...so does that mean that I wake up to less than I had before, because the drop wiped out the underlying value of my profit denominated in BTC?

Sorry if I'm not explaining this well, but I guess what I'm asking is: when I buy BTC/LTC, what is happening?

In Forex, I am pretty sure that if something is listed as USD/EUR, and I buy, it means I'm bullish on USD compared to EUR. So in Poloniex, where things are listed in BTC/altcoin format, does buying BTC/altcoin mean I'm bullish on BTC and bearish on the altcoin?

Thanks for taking a second to help me (and hopefully other on the sidelines) understand.

submitted by /u/tradequesti
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