narrow the spread

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Narrow the Spread

To reduce the bid-ask spread. That is, narrowing the spread occurs when a potential buyer is willing to pay more for a security, when a potential seller is willing to accept less, or both. Narrowing the spread often occurs during a period of high trading volume. See also: Tight market.

narrow the spread

To reduce the difference between the bid price and ask price for a security. Market makers will narrow the spread as trading in a particular security becomes more active and competition increases.
References in periodicals archive ?
This flattened the yield curve and narrowed the spread between the two to its tightest since July, when the country suffered a government crisis.
As was widely expected, the CBR left key policy rates unchanged today, and narrowed the spread on 3m to 12m CBR refinancing instruments.
ECB's bond-buying agreement had restored some market confidence and narrowed the spread between core and peripheral debt in the region.
Some banking industry observers believe that IOR may have caused banks to hold excess reserves rather than use them to fund loans, noting that paying interest has narrowed the spread between the interest earned on a loan and the interest earned by simply holding funds in a Federal Reserve account.
The Federal Reserve, on the other hand, first narrowed the spread between the primary credit rate and the federal funds rate and then lowered the federal funds rate by 50 basis points (from 5.
1 percent despite the sustained low interest rate environment during the past twelve months that has narrowed the spread between the yield on earning assets and the cost of funds.
This approach was favorable for generating trust income because it narrowed the spread of LIBOR over SAP rates significantly as the CPFF rate was substantially higher than the CP rate.
25% the interest rate outlook for the Euro turned positive which has narrowed the spread between it and the dollar to -11 from -84.
yield curve which has narrowed the spread between BART's cost of funds and the return on the Fund's investment portfolio.
77% closer to the end of trading, which narrowed the spread to Russia-30 to below 100 b.
However, along with the usual competitive advantages such as marketing, one-stop shopping has all but eliminated the need for store location, narrowed the spread on products and service while making customer information more available.
today announced that Todd Wodek, a trader with Olde Discount Corporation, has been fined $15,000 and censured for anti-competitive harassment of a competing Market Maker who had narrowed the spread in a security traded on The Nasdaq Stock Market(SM).