What is front-running in trading?

Front-running is the practice of executing trades based on advance knowledge of pending orders or market-moving events, with the intent of profiting from price changes caused by those events.

Why is front-running considered illegal?

Front-running is illegal because it violates the principles of fairness and transparency in financial markets. It exploits non-public information for personal gain, undermining trust and creating an unfair market environment.

How can front-running be prevented?

Front-running can be prevented through market surveillance, transaction monitoring, and implementing fair trading practices. Exchanges and platforms often use order queues, time-stamping, and other techniques to ensure that all trades are executed in the correct order and at fair prices.

Current Article

0%

Complete

All Articles

0%

Complete

Front-Running

What is FRONT-RUNNING?

FULL PROFIT EFFICIENCY PERCENTAGE

Full Profit Efficiency Percentage measures the proportion of full profit potential realized as profit, providing a normalized view of efficiency.

TradeReply is an advanced analytics suite for stock and crypto traders to model trades before execution and analyze past performance—featuring flexible dashboards, visualizations, and real-time metrics, plus a built-in marketplace and social community.

Current Article

0%

Complete

All Articles

0%

Complete

What is FRONT-RUNNING?

FULL PROFIT EFFICIENCY PERCENTAGE

Company

Partners

Community