narrow the spread(redirected from Narrows the Spread)
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.