Currency trading system, methods, and software

• US 20020156718A1
• Filed: 05/16/2001
• Published: 10/24/2002
• Est. Priority Date: 03/08/2001
• Status: Active Grant

• Current Assignee: OANDA Corp.
• Original Assignee: OANDA Corp.
• Inventors: Stumm, Michael, Olsen, Richard B.
• Granted Patent: US 7,146,336 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

In one aspect, the present invention comprises a system for trading currencies over a computer network. A preferred embodiment comprises: (a) a server front-end; (b) at least one database; (c) a transaction server; (d) a rate server; (e) a pricing engine; (f) an interest rate manager; (g) a trade manager; (h) a value at risk server; (i) a margin control manager; (j) a trading system monitor; and (k) a hedging engine. In another aspect, the present invention comprises methods for trading currency over a computer network. In another aspect, the present invention comprises software for currency trading over a computer network.

Claims

1. A system for trading currencies over a computer network, comprising:

(a) a server front-end;

(b) a database;

(c) a transaction server;

(d) a rate server; and

(e) a pricing engine.

2. A system as in claim 1, further comprising an interest rate manager.

3. A system as in claim 2, wherein said interest rate manager is operative to calculate, pay out, and collect interest by the second.

4. A system as in claim 2, wherein said interest rate manager is operative to calculate, pay out, and collect interest on a tick-by-tick basis.

5. A system as in claim 1, further comprising a trade manager.

6. A system as in claim 5, wherein said trade manager comprises a stop-loss daemon that (a) continuously checks whether stop-loss orders should be executed and (b) if a stop-loss order should be executed, executes it through said transaction server.

7. A system as in claim 5, wherein said trade manager comprises a take-profit daemon that (a) continuously checks whether take-profit orders should be executed, and (b) if a take-profit order should be executed, executes it through said transaction server.

8. A system as in claim 5, wherein said trade manager comprises a limit-order daemon that (a) continuously checks whether limit orders should be executed, and (b) if a limit order should be executed, executes it through said transaction server.

9. A system as in claim 1, further comprising a value at risk server.

10. A system as in claim 1, further comprising a margin control manager.

11. A system as in claim 1, further comprising a trading system monitor.

12. A system as in claim 1, further comprising a hedging engine.

14. A method as in claim 13, wherein said market information and said trade order are prefaced with http headers.

16. A method as in claim 15, wherein said market information and said trade order are prefaced with http headers.

18. A method as in claim 17, wherein said market information and said trade order are prefaced with http headers.

20. A method as in claim 19, wherein said market information and said trade order are prefaced with http headers.

13. A method of trading currency over a computer network, comprising the steps of:

(a) transmitting currency market information over a computer network to an end user;

(b) receiving a currency trade order from said end user, wherein said currency trade order comprises limits within which the currency trade will be acceptable to said end user;

(c) calculating a market exchange rate for said currency trade order; and

(d) executing said order if said market exchange rate is within said limits.

15. A method of trading currency over a computer network, comprising the steps of:

(a) transmitting currency market information over a computer network to an end user;

(b) receiving a currency trade order from said end user, wherein said currency trade order comprises a threshold exchange rate;

(c) calculating a market exchange rate for said currency trade order; and

(d) executing said order (1) if said market exchange rate is or becomes above said threshold exchange rate and said order is a sell order, and (2) if said market exchange rate is or becomes below said threshold exchange rate and said order is a buy order.

17. A method of trading currency over a computer network, comprising the steps of:

(a) receiving currency market information over a computer network from a trading system server;

(b) transmitting a currency trade order to said trading system server, wherein said currency trade order comprises limits within which the currency trade will be acceptable; and

(c) if a market exchange rate is within said limits, receiving information from said trading system server indicating that said currency trade order has been executed.

19. A method of trading currency over a computer network, comprising the steps of:

(a) receiving currency market information over a computer network from a trading system server;

(b) transmitting a currency trade order to said trading system server, wherein said currency trade order comprises a threshold exchange rate; and

(c) if (1) the applicable market exchange rate is or becomes above said threshold exchange rate and said order is a sell order, or (2) the applicable market exchange rate is or becomes below said threshold exchange rate and said order is a buy order, receiving information from said trading system server indicating that said currency trade order has been executed.

21. Software for currency trading over a computer network, comprising:

(a) software for receiving data over a computer network from a trading system server;

(b) software for displaying a first graphical user interface display that;

(i) displays continuously updated currency exchange rates in real-time based on data received from said trading system server; and

(ii) displays a plurality of action buttons, including at least one buy/sell button;

(c) software for displaying, in response to a user clicking said buy/sell action button, a buy/sell window display that;

(i) comprises trade order parameter fields; and

(ii) accepts trade order data entered into said fields by a user; and

(d) software for transmitting said trade order data to said trading system server over said computer network.

22. Software as in claim 21, wherein said trade order parameter fields comprise fields for upper and lower limits on acceptable trade market exchange rates.

23. Software as in claim 21, wherein said trade order parameter fields comprise a field for a threshold market rate above or below which a trade should be executed.

25. Software as in claim 24, further comprising a bank interface module.

26. Software as in claim 24, further comprising a trade manager module.

27. Software as in claim 24, further comprising a hedging engine module.

28. Software as in claim 24, further comprising an interest rate manager module.

29. Software as in claim 28, wherein said interest rate manager module is operative to calculate, pay out, and collect interest by the second.

30. Software as in claim 28, wherein said interest rate manager module is operative to calculate, pay out, and collect interest on a tick-by-tick basis.

24. Software for currency trading over a computer network, comprising:

(a) a database management module;

(b) a transaction server module;

(c) a rate server and pricing engine module; and

(d) a transaction server module.