Educational Post Front running is a term used in the financial world to describe an illegal and unethical trading practice. It involves taking advantage of non-public information about a trader’s impending transaction to make personal gains. This article will explain what front running is, how it works, its impact on markets, and how it applies to cryptocurrency trading. What Is Front Running? Front running occurs when a broker, trader, or financial professional acts on insider knowledge. The goal of the front runner is to place their own trades ahead of an impending large order, expecting the market to move in their favor once the larger transaction is executed. This behavior is considered a violation of trust and integrity in financial markets because it exploits confidential client information for personal benefit. In traditional markets, front running typically occurs in anticipation of a large trade. However, it may also occur in crypto markets, especially low-liquidity ones (for example, when trading meme coins in decentralized exchanges).