Click based trading with market depth display

• US 7,505,932 B2
• Filed: 02/18/2005
• Issued: 03/17/2009
• Est. Priority Date: 03/02/2000
• Status: Expired due to Fees

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Kemp, Gary Alan II, Schluetter, Jens-Uwe
• Primary Examiner(s): WEISBERGER, RICHARD C
• Application Number:
  US11/061,554
• Publication Number:
  US 20050149429A1
• Time in Patent Office: 1,488 Days
• Field of Search: 705 34- 37, 705/45
• US Class Current: 705/35
• 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, the method comprising:

setting a preset offset parameter responsive to receiving a command from a user input device;

initiating placement of a trade order with a single action of a user relating to the commodity at a price, wherein the step of initiating placement comprises selecting the price;

establishing a second price value;

computing an acceptable range of prices by a computer processor at which a trade order can be sent, wherein the acceptable range of prices is based on the preset offset parameter and the second price value;

comparing the price to the acceptable range of prices;

when the price is within the acceptable range of prices, automatically electronically sending the trade order to the electronic exchange; and

when the price is outside the acceptable range of prices, automatically electronically refraining from sending the trade order to the electronic exchange.

2. The method of claim 1 wherein the second price value is based on the last traded price of the commodity.

3. The method of claim 1 wherein the second price value is based on a theoretical value.

4. The method of claim 1 wherein the preset offset parameter represents a number of price levels away from the second price value used to compute the acceptable range of prices.

5. The method of claim 1 wherein a boundary of the acceptable range of prices is defined by adding the preset offset parameter to the second price value.

6. The method of claim 1 wherein a boundary of the acceptable range of prices is defined by subtracting the preset offset parameter from the second price value.

7. The method of claim 1 wherein the acceptable range of prices comprises price levels between a boundary price level and the second price value, wherein the boundary price level is based on the preset offset parameter and the second price value.

8. The method of claim 1 wherein the acceptable range of prices comprises price levels between a first boundary price level and a second boundary price level, the first boundary price level is computed by adding the preset offset parameter to the second price value and the second boundary price level is computed by subtracting the preset offset parameter from the second price value.

9. A computer readable medium storing a program product for placing a trade order for a commodity on an electronic exchange using a client system, said program product comprising machine-readable program code for causing, when executed, one or more machines to perform the following method steps:

setting a preset offset parameter responsive to receiving a command from a user input device;

initiating placement of a trade order with a single action of a user relating to the commodity at a price, wherein

the step of initiating placement comprises setting the price;

establishing a second price value;

computing an acceptable range of prices by a computer processor at which a trade order can be sent, wherein the acceptable range of prices is based on the preset offset parameter and the second price value;

comparing the price to the acceptable range of prices;

if the price is within the acceptable range of prices, automatically electronically sending the trade order to the electronic exchange; and

if the price is outside the acceptable range of prices, automatically electronically refraining from sending the trade order to the electronic exchange.

10. A method of placing a trade order for a commodity on an electronic exchange having an inside market with a highest bid price and a lowest ask price, using a client system with a graphical interface and a user input device, the method comprising:

setting a preset offset parameter responsive to receiving a command from a user input device;

dynamically displaying, on the graphical interface, market depth of the commodity comprising information representing orders at the inside market and orders outside of the inside market through a display of prices and quantities of a plurality of bids and asks in the market for the commodity;

displaying, on the graphical interface, an order entry region comprising a plurality of areas for receiving commands to send trade orders, each area associated with a price of the display of prices;

initiating placement of a trade order relating to the commodity at a price in response to a single action of the user input device with a pointer of the user input device positioned over an area in the order entry region associated with the price;

establishing a second price value;

computing an acceptable range of prices by a computer processor at which a trade order can be sent, wherein the acceptable range of prices is based on the preset offset parameter and the second price value;

comparing the price to the acceptable range of prices;

if the price is within the acceptable range of prices, automatically electronically sending the trade order to the electronic exchange; and

if the price is outside the acceptable range of prices, automatically electronically refraining from sending the trade order to the electronic exchange.

11. The method of claim 10 wherein the second price value based on the last traded price of the commodity.

12. The method of claim 10 wherein the second price value based on a theoretical value.

13. The method of claim 10 further comprising modifying the price of the trade order based upon a second parameter, wherein the trade order that is sent to the electronic exchange comprises the modified price.

14. The method of claim 10 wherein quantity associated with the trade order is for a pre-determined fixed quantity.

15. The method of claim 14 wherein the pre-determined fixed quantity can be incremented or decremented by a single action of the user input device.

16. The method of claim 14 wherein the acceptable range of prices comprises price levels between a boundary price level and the second price value, wherein the boundary price level is based on the preset offset parameter and the second price value.

17. The method of claim 14 wherein the acceptable range of prices comprises price levels between a first boundary price level and a second boundary price level, the first boundary price level is computed by adding the preset offset parameter to the second price value and the second boundary price level is computed by subtracting the preset offset parameter from the second price value.