System and method for dynamically determining quantity for risk management
First Claim
1. A method for managing risk associated with an order for a trade able object, the method comprising:
- a. displaying a graphical interface via a display associated with a computing device, the graphical interface having a plurality of axially aligned price levels for the tradeable object;
b. receiving at least one user command via an input device associated with the computing device to move a first order icon to a first price level of the plurality of axially aligned price levels;
c. computing a first order quantity based on a first risk parameter associated with the first order icon and on the first price level; and
d. causing a first order for the first order quantity at a first price associated with the first price level to be submitted for trading.
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Accused Products
Abstract
A system and method for dynamically determining quantity for risk management are described. According to one example embodiment, as a trader positions an order icon at a desired price or price-derivative value on a graphical interface, an order quantity for the order is dynamically determined based on the order price and a selected risk management formula. A trader can change the price or the price-related value for one or more orders by moving the order icons relative to a price axis on a graphical interface. In such an embodiment, the initially calculated order quantity for each order will be dynamically recalculated based on the modified orders for the trading strategy.
95 Citations
21 Claims
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1. A method for managing risk associated with an order for a trade able object, the method comprising:
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a. displaying a graphical interface via a display associated with a computing device, the graphical interface having a plurality of axially aligned price levels for the tradeable object; b. receiving at least one user command via an input device associated with the computing device to move a first order icon to a first price level of the plurality of axially aligned price levels; c. computing a first order quantity based on a first risk parameter associated with the first order icon and on the first price level; and d. causing a first order for the first order quantity at a first price associated with the first price level to be submitted for trading. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
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14. A non-transitory computer readable medium having instructions stored thereon, which when executed by a processor, cause the processor to execute acts comprising:
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a. displaying a graphical interface via a display associated with a computing device, the graphical interface having a plurality of axially aligned price levels for the trade able object; b. receiving at least one user command via an input device associated with a computing device to move a first order icon to a first price level of the plurality of axially aligned price levels; c. computing a first order quantity based on a first risk parameter associated with the first order icon and on the first price level; d. causing a first order for the first order quantity at a first price associated with the first price level to be submitted for trading. - View Dependent Claims (15, 16, 17, 18, 19, 20)
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21. A risk management system for order placement for a tradeable object, the system comprising:
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a. a display configured to generate a graphical interface having a plurality of axially aligned price levels for the tradeable object; b. a user input operatively coupled with the display and configured to receive at least one user command to move a first order icon on the display to a first price level of the plurality of axially aligned price levels; c. a processor operatively coupled with the user input and the display, the processor configured to determine a first order quantity based on a first risk parameter associated with the first order icon and on the first price level; and d. an order router operatively coupled with the processor and configured to submit a first order for the first order quantity at a first price associated with the first price level for trading.
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Specification