Frontrun
By CoinGecko | Updated on Aug 28, 2020
In traditional finance, frontrunning or tailgating is a practice where traders or brokers execute a trade before a prior large order is executed. The said trader or broker will then sell their trades higher to the large order, owing to the order's slippage tolerance. This is highly illegal and unethical in the traditional finance. In the cryptocurrency context, frontrunning works the same but in DEX's where orders made are broadcasted to the blockchain for all to see, a frontrunner will attempt to listen to the blockchain to pick up suitable orders to frontrun by orders on the market and placing enough fees to have the transaction mined faster than the target's orders.
Related Terms
Bloodbath
In context of trading, the term bloodbath is commonly used to describe a market which is on a downtrend with many assets suffering from value depreciation.
Dusting Attack
A new form of malicious activity in which hackers and scammers attempt to undermine the privacy of cryptocurrency users by sending little amounts of money to their wallets.
Smart contracts
Self executing contracts on the blockchain without needing human executors or notary.
Block Height
A number that is used to indicated the position of a particular block within a blockchain
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.