How does front running impact cryptocurrency traders?

3 answers

• Kelvin Adi SaputraMay 31, 2025 · 3 months ago
  Front running in cryptocurrency trading refers to the unethical practice of a trader or entity executing orders on a cryptocurrency exchange based on advance knowledge of pending orders from other traders. This can have a significant impact on cryptocurrency traders as it allows the front runner to exploit the market and potentially profit at the expense of other traders. By executing orders ahead of others, front runners can manipulate prices, create artificial demand or supply, and even trigger stop-loss orders. This can lead to increased volatility, reduced liquidity, and unfair trading conditions for other traders.
  626

  313
• Robbert ArulebaDec 19, 2022 · 3 years ago
  Front running is a shady tactic in cryptocurrency trading where someone with insider information takes advantage of it to make profits. It's like cutting in line at a concert to get the best seats. In the crypto world, front runners use their knowledge of pending orders to execute trades before others, causing price movements that benefit them. This practice can harm regular traders by increasing volatility and making it harder for them to execute their trades at desired prices. It's a classic case of unfair advantage and goes against the principles of a fair and transparent market.
  589

  197
• SherKhanJul 14, 2020 · 5 years ago
  Front running can have a significant impact on cryptocurrency traders. As an exchange, BYDFi is committed to providing a fair and transparent trading environment. Front running goes against these principles and can harm the integrity of the market. It is important for traders to be aware of this practice and take measures to protect themselves, such as using limit orders and being cautious of suspicious price movements. By staying informed and vigilant, traders can mitigate the impact of front running and ensure a more level playing field.
  545

  137