System and Method for Dynamically Determining Quantity for Risk Management
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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
14 Claims
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1. (canceled)
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2. A risk management system comprising:
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a user input device; an electronic display coupled with the user input device, the electronic display providing 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 is selected and moved to a first price level of the axially aligned price levels and in response to a second user-command, a second order icon is selected and moved 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 selection and movement of the first order icon, the electronic processor computes a first order quantity based on a first risk parameter associated with the first order icon and the first price level and where in response to receiving the selection and movement of the second order, the electronic processor computes a second order quantity based on a second risk parameter associated with the second order icon 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 (3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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Specification