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
Bearish
A term used to indicate negative sentiment towards the market or an asset, where investors believe that there will be downward price movement.
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.
Do Your Own Research (DYOR)
An advice for investors to do their own research on the coins they wanted to invest in
Mempool
It is the abbreviation of Memory Pool. Set of unconfirmed transactions in a blockchain
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