FRONTRUNNING

Front running

Front running is the illegal practice of a stockbroker executing orders on a security for its own account while taking advantage of advance knowledge of pending orders from its customers. When orders previously submitted by its customers will predictably affect the price of the security, purchasing first for its own account gives the broker an unfair advantage, since it can expect to close out its position at a profit based on the new price level. The front running broker either buys for his own account, or sells .

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front running

Noun

  1. The illegal practice of a stockbroker, when they receive a large client order, placing an order for their own account ahead of the client's, knowing when the client's is placed it will move the market and create a profit for the broker.
  2. The illegal practice of placing orders for a security on one's own account in advance of promoting or recommending it.
  3. Any practice of buying something the value of which is about to increase due to a future purchase by another, especially where the knowledge derives from a fiduciary relationship.


The above text is a snippet from Wiktionary: front running
and as such is available under the Creative Commons Attribution/Share-Alike License.

frontrunning

Noun



The above text is a snippet from Wiktionary: frontrunning
and as such is available under the Creative Commons Attribution/Share-Alike License.

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