Since frontrunning is again being talked about by technologists, would like to explain the classical version of it, which is almost the opposite of the way that most technologists think it works:
-
-
Note that this frontrunning also structurally requires an informational asymmetry (Charlie can't know what the true price of Google was with sufficient resolution to catch Bob on the lie), which is something which computers/open feeds/etc work to substantially mitigate.
Show this thread -
When people propose e.g. "You need to let large positional traders somehow execute their trades without exposing this fact to other market participants, or they will be 'front run'", they are proposing substantially rolling back effective front-running protection mechanisms.
Show this thread
End of conversation
New conversation -
-
-
They do? Derp derp... Universities aren't sending us their best...
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.