What is Free Riding in Trading?
Free riding is a term used to describe a type of trading activity that is considered to be unethical and illegal in many jurisdictions. It is a form of market manipulation that involves taking advantage of the small price movements in stocks and other securities. The trader will buy low and then immediately sell high, without taking any risk or holding the security for any period of time. This type of trading activity is often done in order to take advantage of the small price movements that occur in the market during normal trading activity....