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Quantitative Finance · Glossary

What is Front-running, back-running?

Also known as: front-running · back-running

Definition 22.2 Markets III: Commodities, Energy and Crypto · Chapter 22 — Maximal Extractable Value

Front-running is placing a transaction ahead of a known pending one to profit from the price move that the pending one will cause. Back-running is placing a transaction immediately after a known pending one, to capture the opportunity it leaves (an arbitrage, a liquidation) without harming it.

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