System and method for dynamically determining quantity for risk management
First Claim
Patent Images
1. A risk management system comprising:
- a user input device for receiving user-commands from a user;
an electronic display coupled with the user input device, the electronic display displaying a graphical interface having a plurality of order icons and a plurality of axially aligned price levels for a tradeable object, where in response to a first user-command received via the input device, a first order icon displayed via the graphical interface is selected and moved relative to the graphical interface to a first price level of the axially aligned price levels and in response to a second user-command, a second order icon displayed via the graphical interface is selected and moved relative to the graphical interface to a second price level of the plurality of axially aligned price levels, and where each of the plurality of axially aligned price levels comprises a price value for the tradeable object;
an electronic processor coupled with the electronic display, where in response to receiving the first user-command for the selection and movement of the first order icon and in response to receiving the second user-command for the selection and movement of the second order, the electronic processor computes a first order quantity and a second order quantity based on a first risk parameter associated with the first order icon, the first price level, and the second price level; and
an order router coupled with the electronic processor and configured to submit to an electronic exchange a first order for trading the first order quantity of the tradeable object at a first price value of the first price level and a second order for trading the second order quantity of the tradeable object at a second price value of the second price level.
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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.
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Citations
12 Claims
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1. A risk management system comprising:
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a user input device for receiving user-commands from a user; an electronic display coupled with the user input device, the electronic display displaying a graphical interface having a plurality of order icons and a plurality of axially aligned price levels for a tradeable object, where in response to a first user-command received via the input device, a first order icon displayed via the graphical interface is selected and moved relative to the graphical interface to a first price level of the axially aligned price levels and in response to a second user-command, a second order icon displayed via the graphical interface is selected and moved relative to the graphical interface to a second price level of the plurality of axially aligned price levels, and where each of the plurality of axially aligned price levels comprises a price value for the tradeable object; an electronic processor coupled with the electronic display, where in response to receiving the first user-command for the selection and movement of the first order icon and in response to receiving the second user-command for the selection and movement of the second order, the electronic processor computes a first order quantity and a second order quantity based on a first risk parameter associated with the first order icon, the first price level, and the second price level; and an order router coupled with the electronic processor and configured to submit to an electronic exchange a first order for trading the first order quantity of the tradeable object at a first price value of the first price level and a second order for trading the second order quantity of the tradeable object at a second price value of the second price level. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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Specification