Hacker News new | ask | show | jobs
by ShabbyDoo 4665 days ago
Right. It's technically not front-running. However, I've heard many traders use the term when talking about how to take advantage of other market participants' likely future orders. As an example for those not immersed in this sort of jargon, imagine that you are driving by an oil refinery and see a huge explosion. You grab your smart phone and go long on gasoline because you presume that short-term refining capacity will be greatly reduced and prices likely will spike. While you had no specific knowledge of other market participants actual orders, you moved quickly to take advantage of their likely future behaviors. Even given this common usage, the author of an article aimed at the general public should not have used language suggestive of a crime when describing behavior akin to my above example.