dear money

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Dear money

British term for tight money.

Dear Money

A market or security with high trading volume and a small bid-ask spread. However, an investor can profit in a dear money market, especially if he/she trades large numbers of securities. When the bid-ask spread is narrow, an investor may have difficulty making more than a small return for each trade, but sheer numbers can make returns add to a substantial amount. The term is mainly used in the United Kingdom and corresponds to the American term tight market.

dear money

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