easy · Market Microstructure hft
What is 'Front-Running'?
- Trading ahead of a known, pending client order to profit from the client's expected price impact.
- Buying a stock and immediately selling it for a small one-cent profit on the same trade.
- Placing a large order with no intent to execute it and then canceling it to trick other traders into moving the price.
- Using a faster computer or network connection to see public news releases before other market participants can react.
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