Front running

The practice in malicious market making of dealing on advance asymmetric information provided by their brokers and investment analysts before their clients have been given the information.

Front running is illegal in the United States when trading securities.

See also broker, asymmetric information, market manipulation and [price-formation](price formation.md).

References

  1. Aldridge, Irene. High-frequency trading: a practical guide to algorithmic strategies and trading systems. Vol. 604. John Wiley & Sons, 2013.
  2. Akerlof, George A. "The market for “lemons”: Quality uncertainty and the market mechanism." In Uncertainty in economics, pp. 235-251. Academic Press, 1978.
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