Right Hand Side - RHS

AAA

DEFINITION of 'Right Hand Side - RHS'

The ask or offer price of a foreign exchange rate. A quote for foreign exchange appears as two prices (known as the bid/ask spread); for example, 1.2591 - 1.3592. The right hand side, in this case 1.3592, represents the available offer price for the base currency or the bid rate for the quoted currency.

INVESTOPEDIA EXPLAINS 'Right Hand Side - RHS'

The right hand side (RHS) is, literally, the right-hand side of the foreign exchange price quote. This is the price that the market is willing to sell a currency pair and the price that traders buy in. The size of the bid/ask spread is an indicator of the current liquidity in a market. A tight spread means there is good liquidity and helps cut down on losses. Forex brokers typically make money off of the bid/ask spread; the difference between the bid and the ask price is the profit on the transaction.

RELATED TERMS
  1. Currency Carry Trade

    A strategy in which an investor sells a certain currency with ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  4. Cross Currency

    A pair of currencies traded in forex that does not include the ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Forex Spread Betting

    A category of spread betting that involves taking a bet on the ...
Related Articles
  1. How To Pay Your Forex Broker
    Forex Education

    How To Pay Your Forex Broker

  2. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  3. Forex: Identifying Trending And Range-Bound ...
    Forex Education

    Forex: Identifying Trending And Range-Bound ...

  4. Forex: World's Biggest Market A Relative ...
    Forex Education

    Forex: World's Biggest Market A Relative ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center