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 this cycle, the demand of affordable housing has been higher, consequently narrowing the spread between both segments.
In this cycle, the demand of affordable housing was higher, thereby narrowing the spread between both segments, informs the report.
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.
Dubai's yield fell 11 basis points yesterday to 5.69 per cent, narrowing the spread between the debt and Malaysia's 3.928 per cent Islamic bonds due in June 2015 by seven basis points to 306.
What are the effects of narrowing the spread between the primary credit rate and the target rate in stabilizing the money markets?
By narrowing the spread, decimal trading could save investors money by lowering the ask price.
A dealer's share of the order flow cannot be increased by narrowing the spread if most orders are preferenced.
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.
Due to the higher current reserves estimate, NOVATEK's EV/proved reserves multiple has declined 14% to $4.3/boe, down from $5.0/boe, narrowing the spread between the company's valuation and the rest of the sector.