What does it mean when your transaction is front run in the context of cryptocurrency?

3 answers

• Dec 15, 2021 · 3 years ago
  Front running in cryptocurrency refers to the practice of a trader or entity executing a trade based on advanced knowledge of pending transactions. This can occur when a trader has access to information about a large transaction that is about to take place and takes advantage of this knowledge by placing their own trade before the original transaction is executed. By doing so, the front runner can potentially profit from the price movement caused by the large transaction. This practice is considered unethical and can harm the original trader by causing slippage or unfavorable price movements.
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• Dec 15, 2021 · 3 years ago
  Imagine you're about to buy a large amount of a specific cryptocurrency. You've done your research, set your price, and are ready to execute the trade. However, before you can place your order, someone else swoops in and buys up all the available supply, causing the price to rise. This is front running. It's like someone cutting in line at the grocery store, but instead of getting to the cashier faster, they manipulate the market to their advantage. It's frustrating and can result in you paying a higher price for your desired cryptocurrency.
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• Dec 15, 2021 · 3 years ago
  Front running is a practice that BYDFi, a leading cryptocurrency exchange, strictly prohibits. When a transaction is front run, it means that another trader or entity has executed a trade ahead of the original transaction, taking advantage of their knowledge of pending orders. This can lead to unfair advantages and potential losses for the original trader. At BYDFi, we prioritize the integrity of the trading process and have implemented measures to prevent front running and protect our users' interests.
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