Visual representation and configuration of trading strategies

• US 7,558,750 B1
• Filed: 05/01/2006
• Issued: 07/07/2009
• Est. Priority Date: 03/31/2005
• Status: Expired due to Fees

• Current Assignee: Trading Technologies International, Inc.
• Original Assignee: Trading Technologies International, Inc.
• Inventors: Burns, Michael J., Singer, Scott F., Zagara, Thomas R.
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): Kanervo; Virpi H
• Application Number:
  US11/415,381
• Time in Patent Office: 1,163 Days
• Field of Search: None
• 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 system and method are provided to visually represent and configure trading strategies used in electronic trading. The system and method may be used to visually represent, among other things, an acceptable range of prices for a trading strategy in relation to a graphical user interface. The acceptable range of prices may be input by a trader to limit when one or more orders are moved from one price to another. The acceptable range of prices can be displayed on a graphical user interface using visual indicators. Using the visual indicators, the acceptable range of prices can also be configured and modified by a trader based on the trader'"'"'s preferences. Other features and advantages are described herein.

Claims

1. A method for displaying information relating to a trading strategy involving a tradeable object being traded electronically on an electronic exchange, comprising:

displaying, on a graphical user interface device, market information relating to a trading strategy, the market information comprising at least one bid quantity and at least one ask quantity that are displayed along a price axis, wherein the trading strategy comprises trading a plurality of tradeable objects such that an order to buy or sell a first tradeable object is based on a desired trading strategy price and further based on market conditions in at least one other tradeable object;

defining, via a computing device, a plurality of price ranges, each price range having a tolerance parameter;

determining, via the computing device, an acceptable range of prices a user is willing to accept for the trading strategy without re-pricing the order for the first tradeable object based on changing market conditions in the at least one other tradeable object of the trading strategy, at least one of the plurality of price ranges, and the associated tolerance parameter;

determining, via the computing device, that a first price range of the plurality of price ranges controls the trading strategy, wherein the first price range comprises the desired trading strategy price;

determining, via the computing device, a tolerance price range corresponding to the first price range, wherein the tolerance price range is determined based on the desired trading strategy price and a tolerance parameter for the first price range;

graphically displaying, on the graphical user interface device, an order indicator at the desired trading strategy price along the price axis;

graphically displaying, on the graphical user interface device, a first indicator along the price axis, the first indicator representing the first price range; and

graphically displaying, on the graphical user interface device, a second indicator along the price axis, the second indicator representing the tolerance price range.

2. The method of claim 1, wherein when a trading strategy price falls outside of the tolerance price range, the order for the first tradeable object is replaced with a new order for the first tradeable object with a second price that is based on the desired trading strategy price and further based on a change in the market conditions of a second tradeable object.

3. The method of claim 1, wherein the first price range comprises a plurality of price levels.

4. The method of claim 1, wherein the first price range comprises a single price level.

5. The method of claim 1, wherein the tolerance price range comprises a plurality of price levels.

6. The method of claim 1, wherein the tolerance price range comprises a single price level.

7. The method of claim 1, wherein the first price range is selected by determining that the desired trading strategy price is within the first price range.

8. The method of claim 1, wherein the trading strategy comprises a spread trading strategy defined between the first tradeable object and the at least one other tradeable object.

9. The method of claim 1, wherein the first indicator comprises a first graphical indicator, and wherein the second indicator comprises a second graphical indicator.

10. The method of claim 1, further comprising:

graphically displaying a third indicator in along the price axis, wherein the third indicator represents another price range of the plurality of price ranges, wherein the another price range is associated with another tolerance parameter.

11. The method of claim 10, wherein the third indicator is graphically distinguished from the first indicator.

12. The method of claim 1, wherein the first indicator and the second indicator are displayed via the graphical user interface device upon receiving a user input activating the first indicator and the second indicator related to the order indicator.

13. The method of claim 1, wherein the first indicator and the second indicator comprise numerical indicators.

14. The method of claim 1, wherein the tolerance parameter comprises an inside tolerance parameter or an outside tolerance parameter.

15. The method of claim 1, wherein the tolerance parameter is added to the desired trading strategy price to determine the tolerance price range.

16. The method of claim 1, wherein the tolerance parameter is subtracted from the desired trading strategy price to determine the tolerance price range.

17. The method of claim 1, further comprising:

using the first indicator to modify the first price range.

18. The method of claim 1, further comprising:

using the second indicator to modify the tolerance price range.

19. A computer readable medium having stored therein computer program executable instructions to execute a method for displaying information relating to a trading strategy involving a tradeable object being traded electronically on an electronic exchange, comprising:

displaying, on a graphical user interface device, market information relating to a trading strategy, the market information comprising at least one bid quantity and at least one ask quantity that are displayed along a price axis, wherein the trading strategy comprises trading a plurality of tradeable objects such that an order to buy or sell a first tradeable object is based on a desired trading strategy price and further based on market conditions in at least one other tradeable object;

defining, via a computing device, a plurality of price ranges, each price range having a tolerance parameter;

determining, via the computing device, an acceptable range of prices a user is willing to accept for the trading strategy without re-pricing the order for the first tradeable object based on changing market conditions in the at least one other tradeable object of the trading strategy, at least one of the plurality of price ranges, and the associated tolerance parameter;

determining, via the computing device, that a first price range of the plurality of price ranges controls the trading strategy, wherein the first price range comprises the desired trading strategy price;

determining, via the computing device, a tolerance price range corresponding to the first price range, wherein the tolerance price range is determined based on the desired trading strategy price and a tolerance parameter for the first price range;

graphically displaying, on the graphical user interface device, an order indicator at the desired trading strategy price along the price axis;

graphically displaying on the graphical user interface device a first indicator along the price axis, the first indicator representing the first price range; and

graphically displaying, on the graphical user interface device, a second indicator along the price axis, the second indicator representing the tolerance price range.