SYSTEM AND METHOD FOR MANAGING RISK IN A TRADING ENVIRONMENT

• US 20120233051A1
• Filed: 03/11/2011
• Published: 09/13/2012
• Est. Priority Date: 03/11/2011
• Status: Abandoned Application

• Current Assignee: Precision Trading IP LLC
• Original Assignee: Bionic Trader Systems LLC
• Inventors: Sheldon, Adam
• Application Number:
  US13/046,683
• Publication Number:
  US 20120233051A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An order entry system for tradable instruments includes: a buying power limit constrained order entry mechanism wherein independent buying power limits are provided for short side and long side. A method of controlling risk in an order entry system for tradable instruments includes the steps of: providing buying power limits constraining order entry; and establishing independent buying power limits for short side and long side.

Claims

1. An order entry system for tradable instruments comprising:

a buying power limit constrained order entry mechanism including a user interface through which a user may place orders using an input mechanism, wherein the orders placed by the user may be constrained by a buying power limit, wherein independent buying power limits are provided for short side and long side, wherein a value of the short side bupower limit and a value of the long side buying power limit may be simultaneously non-identical and non-zero.

2. The system of claim 1 wherein the buying power limits are provided via manual input.

3. The system of claim 1 wherein the buying power limits are provided automatically.

4. The system of claim 3 wherein the buying power limits automatically adjust in response to one or more factors.

5. The system of claim 4 wherein the one or more factors include a factor related to day and time.

6. The system of claim 4 wherein the one or more factors include a factor related to market data.

7. The system of claim 4 wherein the one or more factors include a factor related to user performance.

8. The system of claim 4 wherein the one or more factors include a manually applied user input.

9-12. -12. (canceled)

13. A non-transitory computer readable medium including computer-executable instructions for controlling risk in an order entry system for tradable instruments, the computer-executable instructions causing the system to perform the steps of:

providing buying power limits constraining order entry; and

enabling independent buying power limits to be set for short side and long side, wherein a value of the short side buying power limit and a value of the long side buying power limit may be simultaneously non-identical and non-zero.

14. The computer readable medium of claim 13 wherein the buying power limits are provided via manual input.

15. The computer readable medium of claim 13 wherein the buying power limits are provided automatically.

16. The computer readable medium of claim 13 wherein the computer-executable instructions further cause the system to perform the step of automatically adjusting the buying power limits in response to one or more factors.