The simplest definition of a right-hand side in the forex market (RHS) is the offer price in a single currency pair. RHS refers to the lowest price someone is going to sell the base currency.
You may have seen a lot of forex quotes. Within those quotes, you will see two prices. They are the quote currency and the base currency. The quote currency is in the second list of the pair, meanwhile the base currency in the first list of the pair.
The Details of Right Hand Side (RHS)
If you see the forex quotes, you will notice that RHS is literally the right-hand side of that foreign exchange quotes. Forex quotes give you the bid price on the left and the offer price on the right.
Thus, the RHS is basically the current offer price of a currency pair. This price is where someone who wants to buy the pair should directly make the purchase at that price another person is willing to sell.
For instance, if there is a currency pair quote in 1.2500 by 1.2505, then the RHS is 1.2505. That price is the one in which someone is going to sell the base currency.
As we all know, in the forex market, currencies are always exchanges. In an offer of EUR/USD, for example, someone offers to sell the EUR (the base currency), while buying the USD (the quote currency).
Forex Spread
The bid and offer price in the forex quotes is always different. The difference between those two is named the spread. The size of that bid/ask spread indicates the recent forex liquidity in the market. There is good liquidity if there is a tight spread. That tight spread shows that there are lower transaction costs which at the end can maximize the returns.
Forex spread is where forex brokers usually make their money. Yet, sometimes, some other forex brokers do not directly increase the spread in order for them to gain more money. These brokers, instead, charge a commission from each trade.
