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

• US 20060259404A1
• Filed: 05/03/2006
• Published: 11/16/2006
• 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 8,768,816 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 scapling a tradable object in an electronic trading environment, the method comprising:

displaying a bid display region and a 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 insider 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 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.

2-26. -26. (canceled)