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Stepping in Front |
Also found in: Wikipedia | 0.01 sec. |
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Front Running The act of entering a trade, either with a long or short position, knowing that other investors are about to take a position that will positively influence one's own. For example, one may buy Security A knowing full well that other investors are also about to buy Security A in large blocks, causing its price to increase. This will allow the investor to sell Security A at a much higher price. Front running is forbidden by the SEC as a form of insider trading. It is also known as stepping in front or pennying.
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