Method of trading a financial instrument using stop-order quantity
First Claim
1. In a computerized trading system for use by traders comprising a microprocessor memory storage means, and applications software stored by said memory storage means for execution by said microprocessor;
- said applications software comprising first means for retrieving market data from a market for obtaining the market price, bid quantity, and offer quantity of a traded instrument for use by a trader in determining buy and sell orders in said traded instrument, second means for providing specified input data about price and trade quantity of one of a buy limit order and a sell limit for the traded instrument, and third means for transmitting the one buy limit order and sell limit order to said market for executing said order based on said specified input data;
the improvement comprising;
said second means providing limit price and stop price criteria upon which said one limit order is based, and providing a stop quantity order trigger for said one limit order, said stop quantity order trigger defining a minimum quantity below which and at which said one limit order is submitted, and above which said market order is pending;
said minimum quantity being a trigger limit for submitting said one limit order;
whereby when said one of the market bid quantity or market offer quantity of the traded instrument is one of equal to and less than said specified minimum quantity, said one limit order is submitted to said market for execution.
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Accused Products
Abstract
A stop quantity order (SQO) on a market-traded instrument for a computerized trading system. An order to buy [sell] instrument X is an SQO if, in addition to a limit price, and a stop price, it also specifies a stop quantity SQ. It is triggered by either of the following two conditions: The market'"'"'s best offer [bid] price for the instrument is greater [less] than the stop price, or the market'"'"'s best offer price equals the stop price and the quantity offered [bid] at the best offer [bid] price is less than or equal to the stop quantity. Once triggered, it is submitted to the market as a limit order at the limit price. General stop quantity Orders (GSQO) are similar to SQO'"'"'s, but use two markets, one as a trigger instrument, and one as a trade instrument. An order to buy [sell] instrument X is a GSQO if it specifies a limit price, stop price, stop quantity SQ, a stop instrument Y, and a stop direction SD (bid or offer). It is triggered by one of the following two conditions: The stop direction is “offer”, [“bid]”, and the market'"'"'s best offer [bid] price for instrument Y is greater [less] than the stop price, or the quantity offered [bid] at the best offer [bid] price is less than or equal to the stop quantity, and, once triggered, it is submitted to the market as a limit order at the limit price for instrument X.
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Citations
36 Claims
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1. In a computerized trading system for use by traders comprising a microprocessor memory storage means, and applications software stored by said memory storage means for execution by said microprocessor;
- said applications software comprising first means for retrieving market data from a market for obtaining the market price, bid quantity, and offer quantity of a traded instrument for use by a trader in determining buy and sell orders in said traded instrument, second means for providing specified input data about price and trade quantity of one of a buy limit order and a sell limit for the traded instrument, and third means for transmitting the one buy limit order and sell limit order to said market for executing said order based on said specified input data;
the improvement comprising;
said second means providing limit price and stop price criteria upon which said one limit order is based, and providing a stop quantity order trigger for said one limit order, said stop quantity order trigger defining a minimum quantity below which and at which said one limit order is submitted, and above which said market order is pending;
said minimum quantity being a trigger limit for submitting said one limit order;
whereby when said one of the market bid quantity or market offer quantity of the traded instrument is one of equal to and less than said specified minimum quantity, said one limit order is submitted to said market for execution. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
- said applications software comprising first means for retrieving market data from a market for obtaining the market price, bid quantity, and offer quantity of a traded instrument for use by a trader in determining buy and sell orders in said traded instrument, second means for providing specified input data about price and trade quantity of one of a buy limit order and a sell limit for the traded instrument, and third means for transmitting the one buy limit order and sell limit order to said market for executing said order based on said specified input data;
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11. In a computerized trading system for use by traders comprising a microprocessor memory storage means, and applications software stored by said memory storage means for execution by said microprocessor;
- said applications software comprising first means for retrieving market data from a plurality of markets for obtaining market price, bid quantity, and offer quantity of a first market for a first traded instrument, and market price, bid quantity, and offer quantity of a second market for a second instrument for use by a trader in determining buy and sell orders, second means for providing specified input data about price and trade quantity of one of a buy limit order and a sell limit order for a traded instrument, and third means for transmitting the one buy limit order and sell limit order to a market for submitting said one order based on said specified data;
said second means also providing limit price and stop price criteria upon which said one limit order is based, the improvement comprising;
said second means comprising first order-input means for the limit price, order quantity and type of limit order for said first traded instrument of said first market;
said second means comprising second trigger-input means for stop price, stop direction, and stop quantity of said second traded instrument of said second market;
said second means providing a stop quantity order trigger for said first trade instrument of said first market, said stop quantity order trigger defining a minimum quantity in said second market below which and at which said one limit order for said first trade instrument in said first market is submitted, and above which said market order is pending;
said stop price and said stop direction for said stop price of said second input means being associated with one of a buy side and sell side of said second traded instrument depending upon user-perceived correlation of movements between said first market and said second market. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19)
- said applications software comprising first means for retrieving market data from a plurality of markets for obtaining market price, bid quantity, and offer quantity of a first market for a first traded instrument, and market price, bid quantity, and offer quantity of a second market for a second instrument for use by a trader in determining buy and sell orders, second means for providing specified input data about price and trade quantity of one of a buy limit order and a sell limit order for a traded instrument, and third means for transmitting the one buy limit order and sell limit order to a market for submitting said one order based on said specified data;
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20. A method of trading in a trading instrument using a computerized trading system for use by traders, which computerized trading system is accessible to at least one market for retrieving market data for obtaining market price, bid quantity, and offer quantity of at least one traded instrument for use by a trader in determining buy and sell orders in a traded instrument, comprising:
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(a) inputting into the computerized trading system specified input data for type of order, order price, and trade quantity of a limit order for a traded instrument;
(b) said step (a) comprising providing limit price and stop price criteria upon which a market order is based, and providing a stop quantity order trigger;
(c) said step of providing a stop quantity order trigger comprising defining a minimum quantity below which and at which the limit order is submitted, and above which the market order is pending, said minimum quantity representing a quantity of one of a market bid quantity and a market offer quantity of a traded instrument available at the market price; and
(d) transmitting the market order to the market by the computerized trading system for potential execution based on the specified input data of said steps (a) through (c). - View Dependent Claims (21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31)
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32. A method of trading in a trading instrument by a computerized trading system using a graphical user interface, which computerized trading system is accessible to at least one market for retrieving market data for obtaining market price, bid quantity, and offer quantity of at least one traded instrument for use by a trader in determining buy and sell orders in a traded instrument, comprising:
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(a) displaying on the graphical user interface order entry information for one of a buy limit order and a sell limit order;
(b) said step (a) comprising displaying on said graphical user information the limit price and quantity of said one of a buy limit order and a sell limit order;
(c) displaying on said graphical user interface stop price information for the one of a buy limit order and a sell limit order;
(d) displaying on said graphical user interface trigger-type information for indicating a trigger for determining when said limit order is submitted for execution to a market;
(e) said step (d) comprising displaying on said graphical user interface stop order quantity trigger information for serving as a trigger for determining when said limit order is submitted for execution to a market. - View Dependent Claims (33, 34, 35, 36)
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Specification