Trading Ahead

What does it mean?
A trade transacted from a specialist's account even though there is a public order that offsets the trade.

In Other Words...
Trading ahead is a violation of a specialist's negative obligation to NYSE customers. By trading from his or her own account rather than letting public orders match one another, the specialist is robbing the public of its opportunity to transact the security.

Related Links
Electronic Trading Tutorial - Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.

The Tale of Two Exchanges: NYSE and Nasdaq - Learn some of the important differences between the NYSE and the Nasdaq.

Related Terms
Affirmative Obligation | Negative Obligation | NYSE | Principal | Specialist | Trade

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