Narrowing the spread

Narrowing the spread

Reducing the difference between the bid and ask prices of a security.

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.
References in periodicals archive ?
In the past 12 months, heavy buying on three occasions by Chinaoil, the trading arm of PetroChina, has pushed Oman/Dubai prompt prices substantially higher, thus narrowing the spread between Dubai and global crude benchmark Brent.
Weak refining margins in Europe and Asia have dampened demand for crude in recent months, with the resulting overhang putting pressure on oil prices and narrowing the spread between Brent and WTI.
At the same time, the CBR took additional steps to address the flaws in the transmission mechanism, by narrowing the spread on 3m to 12m CBR refinancing instruments.
Asian credit markets firmed slightly, narrowing the spread on the iTraxx Asia ex-Japan investment-grade index by 2 basis points.
A dealer's share of the order flow cannot be increased by narrowing the spread if most orders are preferenced.
The hearing panel concluded that Wodek called the Market Maker 20 times in order "to harass (the Market Maker) for narrowing the spread in Oak Technology.
However, as Libyan production comes back on line and European demand growth slows, the potential exists for global demand to decline relative to supply, potentially pushing down crude prices and narrowing the spread between the Brent and West Texas Intermediate (WTI) benchmarks.
A rebound in riskier assets improved sentiment in Asian credit markets, narrowing the spread on the iTraxx Asia ex-Japan investment-grade index by 7 basis points.
0/boe, narrowing the spread between the company's valuation and the rest of the sector.
Net interest margin for both the year and fourth quarter of 1993 declined from 1992, as a result of the lower interest rate environment narrowing the spread between yields on earning assets and rates paid on deposits.
We are especially pleased with this increase in the net interest margin for 2006 as many financial institutions experienced declining net interest margins due to the flat and, at times, inverted yield curve that had the effect of narrowing the spread between what banks earned on loans and other assets and what they paid on deposits and other liabilities.
The half-day meeting will feature presentations from leading closed-end fund industry professionals and investment managers, and panel discussions on the Growth of Net Asset Value, Tracking NAV, and Narrowing the Spread Between NAV and Public Price.