Parallel If-Done Order Management with Constant Price Spreads
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Solution Overview
Problem
Existing financial transaction management systems face challenges in executing multiple 'if-done-orders' in parallel, managing market price fluctuations, and automatically stopping orders to minimize customer losses, as they require complex operations and cannot effectively handle irregular price movements.
Innovation Solution
A system comprising an order receiving unit, an order information generation unit, and a contract information generation unit that generates and manages order information groups with first, second, and stop loss orders, setting prices to maintain consistent differences and automatically adjusting order effectiveness based on market conditions, allowing for parallel execution and automatic stoppage of orders.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If multiple if-done-orders are executed individually by different operations, then each order can be managed separately, but the procedures become complex and execution efficiency decreases
Solution Approach 1:
The patent combines multiple if-done-orders into a single compound order structure. Instead of requiring separate operations for each if-done-order, the system allows users to define multiple first orders and multiple second orders that are linked together through shared price conditions. This merging reduces procedural complexity while maintaining the ability to execute multiple transactions in parallel when price conditions are met.
2Reliability
If limit orders are placed at designated prices, then transactions can be executed at specific price levels, but the system cannot automatically stop orders when market conditions change, exposing customers to substantial loss
Solution Approach 1:
The patent implements preliminary action by pre-defining stop loss orders along with the if-done-orders. When the system generates the plurality of first orders and second orders based on price fluctuations, it simultaneously generates corresponding stop loss orders. These stop loss orders are automatically activated when their price conditions are met, providing automatic loss protection without requiring continuous manual monitoring or intervention.
3Ease of operation
If the system generates multiple order information groups with consistent price differences, then parallel if-done-orders can be executed with simplified operations, but the device complexity increases
Solution Approach 1:
The patent applies parameter changes by systematically varying price parameters across multiple order information groups. The system generates orders with consistent price differences by applying uniform price increments or decrements to base prices. This parameter-based approach allows the system to manage complexity through standardized calculations rather than complex procedural logic, enabling parallel order execution while keeping the underlying system relatively simple.
Data Source
AI summary
A transaction management device of executing plural if-done-orders in parallel. An order information generation unit of the device generates plural order information groups each including a first order for placing one of a buy or sell orders at a first order price, a second order for placing the other of these orders at a second order price, and a stop loss order for placing the other of these orders at a stop loss order price. This unit acquires the upper limit price for transactions, the lower limit price for transactions, and the number of simultaneously generated order information groups, and calculates the first and second order prices in such a manner that the price difference between the first orders is constant, the price difference between the second orders is constant, and the price difference between the first and the second orders belonging to the same group is constant.