dual trading

dual trading definition - finance
In the futures industry, the act of a trader simultaneously trading for his or her own account while executing trades for his or her customers. This practice poses a potential conflict of interest if the trader engages in front-running, a practice in which traders take a position for their own accounts with the advance knowledge that a large order will be coming to the market, potentially making the personal trade profitable.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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