Front-Running The practice of trading ahead of large orders to take advantage of favorable price movement. Brokers are prohibited from this practice.
Front-Running: Trading ahead of large orders to take advantage of favorable price movement.
^ Ellen Brown, CounterPunch, 23 April 2010, Computerized Front-Running ^ The Banker, December 2009, [6] ^ SEC: Statement Before the Commission Open Meeting - Flash Orders, Chairman Mary L. Schapiro, September 17, 2009.
This practice poses a potential conflict of interest if the trader engages in front-running, a practice in which traders take a position for their own accounts with the advance knowledge that a large order will be coming to the market, ...
Among the reasons suggested for the initial lack of market interest are the steps required to avoid front-running, the time needed to build performance records, ...
See also: Market, Trading, Share, Exchange, Profit
 
|