A form of insider trading

Front running occurs when investment planners, analysts or exchange dealers purchase securities before recommending them to their customers, or when bank employees execute customers' orders only after they have bought or sold the relevant security for their own account.

Front running is prohibited by the Securities Trading Act.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.