FxPro Help Centre - Glossary

Front Running (undefined)

Front running is an illegal practice of brokers entering into an equity trade with foreknowledge of events that are likely to affect the market in order to gain an economic advantage. For instance, a broker who purchases a security with a personal account just before executing a large order on behalf of a client is regarded as front running because the smaller order will likely benefit from a price increase caused by the execution of the second larger order.