narrow 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.

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.