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Narrowing the spread |
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Narrowing the spread Narrowing the spread On an exchange, the act of reducing the gap between the highest price a buyer of a security or other asset is willing to pay and the lowest price a seller is willing to offer. The spread narrows when a potential buyer offers a higher price and a potential seller offers a lower price. As the spread continues to narrow, the security becomes more liquid. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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