System and method for automatic scalping of a tradeable object in an electronic trading environment

• US 20050262003A1
• Filed: 03/31/2003
• Published: 11/24/2005
• Est. Priority Date: 03/02/2000
• Status: Active Grant

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Pazner, Assaf, Brumfield, Harris C., Ebersole, Joan
• Granted Patent: US 7,447,655 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and methods for automatic scalping in an electronic trading environment are presented. According to one embodiment, a trading application may display an indicator associated with a price level based on which a tradable object can be automatically traded. When a scalping application detects a fill associated with a first order, the scalping application may automatically enter a second order to offset a position created with the first order. According to one embodiment, the second order is automatically placed on the market when the inside market moves to a predetermined price level in relation to the displayed indicator.

Claims

1. A method for automatic scalping a tradable object in an electronic trading environment, the method comprising:

displaying a bid display region and an ask display region in relation to a common static axis of prices, each region comprising a plurality of locations, wherein each location corresponds to a price level along the common static axis of prices;

displaying along the common static axis of prices an indicator associated with a target price based on which an order is to be automatically entered for the tradable object;

detecting a first position of the inside market relative to the indicator;

automatically entering a first order based on the first position of the inside market relative to the indicator;

determining that a quantity associated with the first order has been filled;

detecting a second position of the inside market relative to the indicator;

automatically entering a second order based on the second position of the inside market relative to the indicator to offset a position created with the first order.

2. A computer readable medium having stored therein instructions to execute the method of claim 1.

3. The method of claim 1, wherein the first position comprises a position of the inside market above the target price, and wherein automatically entering the first order comprises automatically entering a sell order.

4. The method of claim 3, wherein the second position comprises a position of the inside market below the target price, and wherein automatically entering the second order comprises automatically entering a buy order.

5. The method of claim 1, wherein the first position comprises a position of the inside market below the target price, and wherein automatically entering the first order comprises automatically entering a buy order.

6. The method of claim 5, wherein the second position comprises a position of the inside market above the target price, and wherein automatically entering the second order comprises automatically entering a sell order.

7. The method of claim 1, wherein an order quantity associated with the second order equals to an order quantity associated with the first order.

8. A method for automatic scalping a tradable object in an electronic trading environment, the method comprising:

displaying a bid display region and an ask display region in relation to a common static axis of prices, each region comprising a plurality of locations, wherein each location corresponds to a price level along the common static axis of prices;

displaying along the common static axis of prices an indicator range associated with a plurality of prices at which the tradable object can be automatically traded;

detecting that a quantity of a first order associated with the tradable object has been filled; and

automatically entering a second order for the tradable object to offset a position created with the first order, wherein the second order is placed at a price within the indicator range.

9. A computer readable medium having stored therein instructions to execute the method of claim 8.

10. The method of claim 8, wherein displaying an indicator range associated with a plurality of prices comprises:

displaying a first indicator in relation with a first price on the common static axis of prices, the first indicator associated with a highest price of the plurality of prices; and

displaying a second indicator in relation with a second price on the common static axis of prices, the second indicator associated with a lowest price of the plurality of prices.

11. The method of claim 8, wherein the first order comprises a buy order, and automatically entering a second order for the tradable object comprises automatically entering a sell order.

12. The method of claim 8, wherein the first order comprises a sell order, and automatically entering a second order for the tradable object comprises automatically entering a buy order.

13. The method of claim 8, wherein the price associated with the second order is user-configurable.

14. The method of claim 13, wherein the price is determined based on a user-configurable formula.

15. The method of claim 8, wherein a quantity associated with the second order is distributed between prices within the indicator range.

16. The method of claim 8, wherein the indicator range associated with the plurality of prices is user configurable.

17. The method of claim 8, wherein the indicator range is movable in relation to the static axis of prices.

18. The method of claim 8, wherein automatically entering a second order for the tradable object to offset a position created with the first order comprises entering the second order to close the position created with the first order.

19. The method of claim 8, wherein the first order comprises an automatically entered order.

20. The method of claim 8, wherein the first order comprises a manually entered order.

21. A method for automatic scalping a tradable object in an electronic trading environment, the method comprising:

displaying a bid display region and an ask display region in relation to a common static axis of prices, each region comprising a plurality of locations, wherein each location corresponds to a price level along the common static axis of prices;

displaying along the common static axis of prices an indicator range associated with a plurality of prices at which the tradable object can be automatically traded;

automatically entering a buy quantity for the tradable object whenever a sell quantity associated with the tradable object is filled; and

automatically entering a sell quantity for the tradable object whenever a buy quantity associated with the tradable object is filled, wherein the buy and sell quantities are automatically entered within the indicator range.

22. A computer readable medium having stored therein instructions to execute the method of claim 21.

23. The method of claim 21, wherein the prices at which the buy and sell orders are entered are based on a user-configurable formula.

24. The method of claim 21, wherein displaying an indicator range associated with a plurality of prices at which the tradable object can be automatically traded comprises displaying along the common static axis of prices a first indicator range associated with a first plurality of prices at which the buy quantity can be automatically traded, and further displaying along the common static axis of prices a second indicator range associated with a second plurality of prices at which the sell quantity can be automatically traded.

25. The method of claim 21, wherein the automatically entered buy quantity is distributed between prices within the first indicator range, and wherein the automatically entered sell quantity is distributed between prices within the second indicator range.

26. The method of claim 21, wherein the indicator range is user configurable, and wherein the indicator range is user movable in relation to the static axis of prices.