Trading system and method having a configurable market depth tool with dynamic price axis

Abstract

A system and method for the electronic trading of investment vehicles, such as stocks, bonds, options, commodities, stock and futures index contracts, and the like, is disclosed. The system and method provide a graphical user interface having a versatile and efficient market depth tool with a dynamic price axis for executing trades. The tool facilitates the display of and the rapid placement of trade orders within the market. The system provides for user initiated functionality to control, among other things, the manner in which the dynamic price axis moves in response to market conditions.

Description

[0001]This application relates to and claims priority from provisional patent application Ser. No. 60 / 778,728.FIELD OF INVENTION[0002]This invention relates generally to a system and method for the electronic trading of investment vehicles, such as stocks, bonds, options, commodities, stock and futures index contracts, and the like, and in particular to an electronic trading system and method with a graphical user interface having a versatile and efficient market depth tool with a dynamic price axis for executing trades. The tool facilitates the display of and the rapid placement of trade orders within the market trading depth of an investment vehicle, where such a vehicle includes anything that can be traded with quantities and / or prices.BACKGROUND OF INVENTION[0003]Many exchanges throughout the world use electronic trading processes to trade stocks, bonds, futures, options and other products. These electronic exchanges typically have three components: mainframe computers (host), c...

AI Technical Summary

Benefits of technology

"The present invention is a system and method for electronic trading of investment vehicles. It provides a market depth convergence tool that allows users to enter and cancel orders. The tool automatically centers the central market price on a specified point in a graphical user interface display. It uses a plurality of axes to represent the price, bid, and ask volumes of the vehicle being traded. The tool allows users to set a convergence point and determine the speed at which the central market point will move back to the specified point. The invention helps traders reduce risks associated with sudden changes in price levels and provides flexibility in setting the convergence speed. It can be used for any type of financial instrument or vehicle traded on an electronic trading exchange."

Problems solved by technology

A trader lacking a technologically advanced interface to trade in such markets is at a severe competitive disadvantage in the present trading environment.

Without all of this information, the market will not accept the order.

In existing systems, multiple elements of an order must be entered prior to an order being sent to market, which can be time consuming for the trader.

On a trading screen, this results in rapid changes in the price and quantity fields within the grid defining the active trading data for that vehicle.

If a trader intends to enter an order at a particular price, but misses the price because the market prices moved before the order could be entered, the trader may lose hundreds or thousands of dollars on that trade.

Users of the former type of system run the risk that an instantaneous change in price that occurs simultaneously with a command to submit or withdraw an order may result in an unwanted execution of the order (either a buy or sell) at an undesired price.

Images