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

[0011]The present invention relates generally a system and method for the electronic trading of investment vehicles. The system and method provide a market depth convergence tool useful to provide order entry and order cancellation functionality for the trading of financial products and vehicles such as stocks, bonds, options, commodities, futures, stock and future index contracts, and the like. The tool advantageously provides flexible and configurable systems, mechanisms and methods for establishing the appearance and functionality of the tool and for automatically centering a central market price upon a specified point or area within a graphical user interface display. Advantageously, the market depth tool may be represented by a plurality of axes, oriented horizontally, vertically, or in some other relationship, with a first axis (which could be a row or a column) representative of prices of the vehicle being traded, a second axis (which could be a row or a column) representative of bid volume and a third axis (which could be a row or a column) representative of ask volume. The disclosed market depth convergence tool allows values in a price axis to dynamically and gradually move back towards a pre-set convergence point or area in the graphical user interface display area when the central market point changes, with such movement being definable by the system user.

[0012]The trading system and method of one embodiment of the present invention provides a graphical user interface (hereinafter “GUI”) having a market depth convergence tool that provides order entry and order cancellation functionality, preferably with a click of a user input device, such as a computer mouse or computer key, and also provides flexible and configurable mechanisms for automatically converging the central market point (which may represent the inside market price) upon a specified point within a graphical display area. With the convergence tool of one embodiment, the values in the price axis dynamically converge upon a convergence point on the GUI display so that the central market point will move toward a location that is within the trader's field of view on the screen. This convergence can be gradual or instantaneous, depending on trader preferences and settings. Thus, when there is a change in the central market point, as will happen when the inside market price changes during the trading of the financial vehicle, that point will move towards a pre-defined location on the graphical user interface display in a manner as may be defined by the system user.

[0014]A gradual convergence of the central market point upon the convergence point provides the benefits of automatically, and preferably gradually, positioning the central market point in alignment with the convergence point thereby reducing risks associated with an instantaneous shift in underlying price levels of the trading vehicle. The trader is able to set the velocity (or speed) of this convergence at a level with which the individual trader is comfortable.

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.

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