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HFT is not front-running. Front-running is a form of trading on non-public information.
by SamReidHughes 6y ago
HFT is not front-running. Front-running is a form of trading on non-public information.
- bananaface 6y agoSome forms of HFT work by getting information from other exchanges before you, then front-running on price differences.
- SamReidHughes 6y agoThat's not what front-running is.
- lucaspauker 6y agoThis is arbitrage, not front running. Front running requires not-public information.
- denotational 6y agoFront-running usually refers to a fairly specific scenario in which a brokerage or fiduciary executes orders as principal prior to dealing on behalf of their client so as to benefit from a market movement they anticipate will be caused by the client's orders. This is categorically not what HFT firms are doing.
- deleted 6y ago[deleted]