front running
Queue jumping, financially
Front running is trading on advance knowledge of pending orders that will move a market price.
A broker who knows a client is about to place a large buy order might purchase shares first, then profit when the client's order drives the price up.
The practice is illegal in securities markets.
In cryptocurrency, front running often involves bots detecting pending transactions and jumping ahead in the queue: The bot front-ran my swap and cost me fifty dollars.
Artificially distorting asset prices
- conflict of interestCompromised impartiality from competing stakes
- breach of dutyFailing an obligation owed
- confidentialityQuality of protecting secrets
- disclosureAct of revealing information
insider information · unfair advantage · deception · exploitation · self-dealing · client trust · misappropriation · impropriety
Rapid automated market transactions
- algorithmic tradingComputer-driven market transactions
- brokerTransaction intermediary for hire
- market makerTrader ensuring constant liquidity
- market orderInstant execution trade request
limit order · securities exchange · brokerage firm · queue jumping · co-location · execution
Illegal financial market deception
- complianceAdhering to requirements
- prosecutionPursuing legal charges
- finesMonetary sanctions or particles
- penaltiesPunishments for infractions
investigation · whistleblower · sanctions · consent decree · disgorgement · civil action · criminal charges · FINRA
Beginning advantage given
- leadDense metal, symbol Pb
- pole positionFrontmost starting spot
- vanguardForemost position or group
- forefrontMost prominent position
edge · first mover · anticipation · preemption · positioning
market manipulation
Artificially distorting asset prices
- conflict of interestCompromised impartiality from competing stakes
- breach of dutyFailing an obligation owed
- confidentialityQuality of protecting secrets
disclosure · insider information · unfair advantage · deception · exploitation · self-dealing · client trust · misappropriation · impropriety · bad faith
high-frequency trading
Rapid automated market transactions
- algorithmic tradingComputer-driven market transactions
- brokerTransaction intermediary for hire
- market makerTrader ensuring constant liquidity
market order · limit order · securities exchange · brokerage firm · queue jumping · co-location · execution
securities fraud
Illegal financial market deception
- complianceAdhering to requirements
- prosecutionPursuing legal charges
- finesMonetary sanctions or particles
penalties · investigation · whistleblower · sanctions · consent decree · disgorgement · civil action · criminal charges · FINRA · settlement
head start
Beginning advantage given
- leadDense metal, symbol Pb
- pole positionFrontmost starting spot
- vanguardForemost position or group
forefront · edge · first mover · anticipation · preemption · positioning