Click based trading with market depth display

• US 6,938,011 B1
• Filed: 06/09/2000
• Issued: 08/30/2005
• Est. Priority Date: 03/02/2000
• Status: Expired due to Term

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Schluetter, Jens-Uwe, Kemp, Gary Alan II
• Primary Examiner(s): WEISBERGER, RICHARD C
• Application Number:
  US09/589,751
• Time in Patent Office: 1,908 Days
• Field of Search: 705/35, 705/36, 705/37, 345/814
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method and system for reducing the time it takes for a trader to place a trade when electronically trading commodities on an exchange, thus increasing the likelihood that the trader will have orders filled at desirable prices and quantities. Click based trading, as described herein and specifically the “Click” and “Dime” methods of the present invention, enables a trader to execute single mouse click trades for large volumes of commodities at a price within a pre-specified range.

Claims

1. A method of placing a trade order for a commodity on an electronic exchange using a client system with a user input device and with preset parameters for trade orders, the method comprising:

displaying a market depth of the commodity comprising information representing orders at an inside market and orders outside of the inside market through a dynamic display of prices and quantities of a plurality of bids and asks in the market for the commodity; and

initiating placement of a trade order relating to the commodity at a price outside of the inside market in response to a single action of the user input device with a pointer of the user input device positioned over an area in said dynamic display;

setting a price of the trade order based in part upon a preset parameter and the position of the pointer at the time of said single action.

2. A method of placing a trade order for a commodity according to claim 1, wherein said trade order is a click trade order if a single action of a first type is taken and said trade order is a dime trade order if a single action of a second type is taken.

3. A method of placing a trade order for a commodity according to claim 1, wherein said trade order is an order to sell a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action minus a click +/−

parameter value.

4. A method of placing a trade order for a commodity according to claim 1, wherein said trade order is an order to buy a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action plus a click +/−

parameter value.

5. A method of placing a trade order for a commodity according to claim 1, further comprising the step of submitting the trade order only if the price is within a click offset parameter value from a last traded price of the commodity.

6. A method of placing a trade order for a commodity according to claim 1, wherein said trade order is an order to buy a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action plus a dime +/−

parameter value.

7. A method of placing a trade order for a commodity according to claim 1, wherein said trade order is an order to sell a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action minus a dime +/−

parameter value.

8. A method of placing a trade order for a commodity according to claim 1, further comprising the step of submitting the trade order only if the price is equal to or better than a theoretical price for the commodity.

9. A method of placing a trade order for a commodity according to claim 8, wherein said theoretical price is adjusted by an edge parameter amount, downward when comparing to said ask price and upward when comparing to said bid price.

10. A method of placing a trade order for a commodity according to claim 1, wherein the pointer is positioned over a quantity parameter area and the quantity parameter is adjusted in response to a single action of the user input device.

11. A method of placing a trade order for a commodity according to claim 10, wherein the quantity parameter is incremented in response to a single action of a first type and is decremented in response to a single action of a second type.

12. A computer readable medium having program code recorded thereon for execution on a computer to place a trade order for a commodity on an electronic exchange, comprising:

a first program code for displaying a market depth of the commodity comprising information representing orders at an inside market and orders outside of the inside market through a dynamic display of prices and quantities of a plurality of bids and asks in the market for the commodity;

a second program code for initiating placement of a trade order relating to the commodity at a price outside of the inside market in response to a single action of the user input device with a pointer of the user input device positioned over an area in said dynamic display; and

a third program code for setting a price of the trade order based in part upon a preset parameter and the position of the pointer at the time of said single action.

13. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is a click trade order if a single action of a first type is taken, and said trade order is a dime trade order if a single action of a second type is taken.

14. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is an order to sell a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action minus a click +/−

parameter value.

15. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is an order to buy a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action plus a click +/−

parameter value.

16. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is an order to sell a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action and wherein said trade order is placed only if said bid price is within a click offset parameter value from a last traded price of the commodity.

17. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is an order to buy a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action and wherein said trade order is placed only if said ask price is within a click offset parameter value from a last traded price of the commodity.

18. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is an order to buy a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action plus a dime +/−

parameter value.

19. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for establishing that said trade order is an order to sell a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action minus a dime +/−

parameter value.

20. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for ensuring that said trade order is placed only if an ask price or a bid price associated with an area over which the pointer was positioned at the time of said single action is equal to or better than a theoretical price for the commodity.

21. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for ensuring that said trade order is placed only if an ask price associated with an area over which the pointer was positioned at the time of said single action is equal to or better than a theoretical ask price for the commodity.

22. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for ensuring that said trade order is placed only if a bid price associated with an area over which the pointer was positioned at the time of said single action is equal to or better than a theoretical bid price for the commodity.

23. A computer readable medium having program code recorded thereon for execution on a computer according to claim 20, further comprising program code for establishing that said theoretical price is adjusted by an edge parameter amount, downward when comparing to said ask price and upward when comparing to said bid price.

24. A computer readable medium having program code recorded thereon for execution on a computer according to claim 12, further comprising program code for adjusting a quantity parameter in response to a single action of the user input device when the pointer is positioned over a quantity parameter area.

25. A computer readable medium having program code recorded thereon for execution on a computer according to claim 24, wherein the quantity parameter is incremented in response by a single action of a first type and is decremented in response to a single action of a second type.

26. A client system for placing a trade order for a commodity on an electronic exchange, the system comprising:

a display device for displaying a market depth of the commodity comprising information representing orders at an inside market and orders outside of the inside market through a dynamic display of prices and quantities of a plurality of bids and asks in the market for the commodity;

a user input device for positioning a pointer thereof over an area in said dynamic display and for initiating placement of a trade order relating to the commodity at a price level away from the inside market through a single action of the user input device; and

a trade order characteristics setting component for setting a price of the trade order based in part upon a preset parameter and the position of the pointer at the time of said single action.

27. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes that said trade order is a click trade order if a single action of a first type is taken and said trade order is a dime trade order if a single action of a second type is taken.

28. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes said trade order is an order to sell a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action minus a click +/−

parameter value.

29. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes that said trade order is an order to buy a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action plus a click +/−

parameter value.

30. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes that said trade order is an order to sell a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action and places said trade order only if said bid price is within a click offset parameter value from a last traded price of the commodity.

31. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes that said trade order is an order to buy a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action and places said trade order only if said ask price is within a click offset parameter value from a last traded price of the commodity.

32. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes that said trade order is an order to buy a preset quantity of the commodity at a limit price equal to a bid price associated with an area over which the pointer was positioned at the time of said single action plus a dime +/−

parameter value.

33. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component establishes that said trade order is an order to sell a preset quantity of the commodity at a limit price equal to an ask price associated with an area over which the pointer was positioned at the time of said single action minus a dime +/−

parameter value.

34. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component ensures that said trade order is placed only if an ask price or a bid price associated with an area over which the pointer was positioned at the time of said single action is equal to or better than a theoretical price for the commodity.

35. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component ensures that said trade order is placed only if an ask price associated with an area over which the pointer was positioned at the time of said single action is equal to or better than a theoretical ask price for the commodity.

36. A client system for placing a trade order according to claim 26, wherein said trade order characteristics setting component ensures that said trade order is placed only if a bid price associated with an area over which the pointer was positioned at the time of said single action is equal to or better than a theoretical bid price for the commodity.

37. A client system for placing a trade order according to claim 34, wherein said trade order characteristics setting component establishes that said theoretical price is adjusted by an edge parameter amount, downward when comparing to said ask price and upward when comparing to said bid price.

38. A client system for placing a trade order according to claim 26, wherein a quantity parameter is adjusted in response to a single action of the user input device when the pointer is positioned over a quantity parameter area.

39. A client system for placing a trade order according to claim 38, wherein the quantity parameter is incremented in response by a single action of a first type and is decremented in response to a single action of a second type.

40. A method of placing a trade order for a commodity on an electronic exchange using a client system with a user input device, the method comprising:

displaying a market depth of the commodity comprising information representing orders at an inside market and orders outside of the inside market through a dynamic display of prices and quantities of a plurality of bids and asks in the market for the commodity;

setting a plurality of parameters for trading;

initiating placement of a trade order relating to the commodity at a price outside of the inside market in response to a single action of the user input device with a pointer of the user input device positioned over an area in said dynamic display;

wherein a price of the trade order is based in part upon at least one of the parameters and the position of the pointer at the time of said single action.

41. A method of placing a trade order for a commodity according to claim 40, wherein said step of setting a plurality of parameters includes setting at least one of a quantity parameter, a click +/−

parameter, a dime +/−

parameter, a click offset parameter, a theoretical price parameter, a theoretical ask price parameter, a theoretical bid price parameter and an edge parameter.