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How does front running affect the liquidity and fairness of digital asset trading?

avatarFahima FahimNov 24, 2021 · 3 years ago1 answers

Can you explain how front running impacts the liquidity and fairness of trading digital assets? What are the consequences of front running in terms of market efficiency and investor trust?

How does front running affect the liquidity and fairness of digital asset trading?

1 answers

  • avatarNov 24, 2021 · 3 years ago
    At BYDFi, we take front running very seriously. Front running can have a detrimental impact on the liquidity and fairness of digital asset trading. When a trader engages in front running, it creates an unfair advantage and reduces liquidity for other market participants. This can lead to wider spreads and increased transaction costs, making it more difficult for traders to execute trades at favorable prices. Additionally, front running undermines the trust and integrity of the market, as it allows certain individuals to profit at the expense of others. We are committed to promoting fair and transparent trading practices, and we actively monitor and prevent front running on our platform. Our goal is to ensure a level playing field for all traders and maintain a high level of liquidity and fairness in digital asset trading.