| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
front running
Definition 1.
An illegal activity in which a trader takes a position in an equity in advance of an action which he/she knows his/her brokerage will take that will move the equity's price in a predictable fashion. also called forward trading.
|
Definition 2.
An unethical practice where brokers trade an equity based on information from the analysis department before their clients have been given the information.
|
Definition 3.
Entering into options or futures contracts with advance knowledge of a block transaction that will influence the price of the underlying security to capitalize on the trade. This practice is expressly forbidden by the SEC.
|
|
|