DEFINITION of 'Tailgating'

When a broker or advisor buys or sells a security for a client(s) and then immediately makes the same transaction in his or her own account.

BREAKING DOWN 'Tailgating'

This is not illegal like front running, but it is not looked upon favorably because the broker is mostly likely placing a trade for his or her own account based on what the client knows (like inside information).

  1. Sidecar Investment

    An investment strategy in which one investor allows a second ...
  2. Front Running

    The unethical practice of a broker trading an equity based on ...
  3. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  4. Clowngrade

    An upgrade or downgrade of a security for reasons considered ...
  5. Valium Picnic

    A market holiday or a slow trading day.
  6. Piker

    A broker or investor who makes small size trades.
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