A spread is the term given to the absolute or relative difference between the bid and ask limit of the issuer's quote.
The breadth of the spread is influenced, among other things, by the market situation and the terms of the warrant. The issuer defines the maximum, absolute or relative breadth of this spread for each of its securities. This maximum spread is the maximum bid-ask spread which the issuer will observe when entering quotes, irrespective of the market situation. It is therefore larger than the spread which the issuer normally enters, since it must also be observed in times of volatile market phases. The absolute spread actually entered by the issuer on average is posted as an effective spread as part of performance assessment. If a quote is entered with a spread which is broader than the predefined maximum spread, it will be rejected by Xetra®.
