Front running

Trading and Exchanges Chapter 11: Front-Runners and Order Anticipators

Chapter 11 is about the shady side of trading. Harris introduces order anticipators: people who profit not by knowing what a stock is worth, but by figuring out what other traders are about to do and trading before them. They are parasites. Harris uses that word deliberately. No better prices. No liquidity. They just extract money from other people’s trades.

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