front running

front running definition - finance
Illegally making a trade for a personal account or a preferred customerÂ’s account with the advance knowledge that a large order is in the market or will be coming to the market that likely will create a profit. Front running is possible in situations in which traders in the futures or stock markets trade both for their own accounts and their customersÂ’ accounts, a practice known as duel trading. However, just because a trader engages in dual trading doesnÂ’t mean that the trader is involved with front running.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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