An illegal activity in which a trader takes a position in an equity in advance...
An illegal trading practice in which a party, aware of impending information, such as a large buy order, executes a trade in the futures or options market prior to the release of the information in order to profit from an anticipated favorable price move.
Taking a position in order to benefit from an upcoming, market-moving transaction. Sometimes illegal. also called forward trading.
refers to situations when a manager who has private information about the direction of movement of an asset takes a private position in the asset before purchasing it for the fund. Finance By Example (Archives): Front Running & Excess Returns
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.
A type of misuse of information, where the employees of a brokerage firm or a bank trade in equity shares using price-sensitive information that is privately available to the firm.
A situation that occurs when a securities or commodities trader takes a position in a security in order to take advantage of a large upcoming transaction of which he is aware.
The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients have been given the information.
With respect to commodity futures and options, taking a futures or option position based upon non-public information regarding an impending transaction by another person in the same or related future or option. Also known as trading ahead.
Front running is the illegal practice of a stock broker executing orders on a security for his own account (and thus affecting prices) before filling orders previously submitted by his customers. After the broker has made his original transactions, he can expect to close out his position at a profit based on the new price level. Front running may involve either buying (where the broker buys for his account, driving up the price before filling customer buy orders) or selling (where the broker sells for his account, driving down the price before filling customer sell orders).