U.S. patent application number 10/371432 was filed with the patent office on 2003-07-03 for automatic ordering method and system for trading of stock, bond, item, future index, option, index current and so on.
Invention is credited to Cha, Min-Ho.
Application Number | 20030126069 10/371432 |
Document ID | / |
Family ID | 36250748 |
Filed Date | 2003-07-03 |
United States Patent
Application |
20030126069 |
Kind Code |
A1 |
Cha, Min-Ho |
July 3, 2003 |
Automatic ordering method and system for trading of stock, bond,
item, future index, option, index current and so on
Abstract
The present invention relates to an automatic ordering method
and system for trading of stocks, bonds, items, futures, options,
indexes, foreign currencies through data communication network, and
more particularly to an automatic ordering method and system by
computer according to certain conditions predetermined by an
investor wherein the automatic ordering method for trading of
stocks, bonds, items, futures, options, indexes, foreign currencies
and the like through data communication network according to the
present invention comprises the steps of: determining a
trade-desired object in a computer system to input automatic trade
conditions containing purchase and selling conditions; ordering
purchase and selling according to the trade conditions through the
data communication network; discriminating whether the purchase
order and/or selling order has been contracted through the data
communication network; and placing new purchase and/or selling
orders through the data communication network according to the
trade conditions predetermined by the computer when either the
purchase order or the selling order is contracted.
Inventors: |
Cha, Min-Ho; (Seoul,
KR) |
Correspondence
Address: |
MARGER JOHNSON & MCCOLLOM PC
1030 SW MORRISON STREET
PORTLAND
OR
97205
US
|
Family ID: |
36250748 |
Appl. No.: |
10/371432 |
Filed: |
February 20, 2003 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
10371432 |
Feb 20, 2003 |
|
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09509326 |
Mar 24, 2000 |
|
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Current U.S.
Class: |
705/37 |
Current CPC
Class: |
G06Q 40/08 20130101;
G06Q 40/04 20130101; G06Q 40/00 20130101; G06Q 40/025 20130101;
G06Q 20/10 20130101 |
Class at
Publication: |
705/37 |
International
Class: |
G06F 017/60 |
Foreign Application Data
Date |
Code |
Application Number |
Feb 24, 1999 |
KR |
99-6108 |
Sep 3, 1999 |
KR |
99-37343 |
Claims
What is claimed is:
1. An automatic ordering method for trading of stocks, bonds,
items, futures, options, indexes, foreign currencies or the like
using a computer system connected to a data communication network,
comprising: a) selecting a trade-desired object and inputting an
automatic trade condition containing purchase and selling
conditions in the computer system, the automatic trade condition
comprising a selling price, a selling quantity, a purchase price
and a purchase quantity; b) placing purchase and selling orders
according to the automatic trade condition through the data
communication network; c) determining whether the purchase order or
selling order has been contracted through the data communication
network; and d) placing new purchase and selling orders at a new
price by the computer through the data communication network
according to the automatic trade condition when either the purchase
order or the selling order is contracted according to step c).
wherein step a) is executed by a user and steps b), c), d) are
executed without the intervention of the user, the new selling
order price in step d) is higher than the contracted price
determined in step c), and the new purchase order price in step d)
is lower than the contracted price determined in step c).
2. An automatic ordering method, the method using a computer system
connected to a data communication network, comprising: a) selecting
a trade-desired stock and inputting an automatic trade condition
including purchase and selling conditions at the computer system,
the automatic trade condition comprising a selling price, a selling
quantity, a purchase price and a purchase quantity; b) placing
through the data communication network a stock purchase order or a
stock selling order according to the trade condition; c)
determining whether or not the stock selling order or a stock
purchase order has been contracted through the data communication
network; and d) placing by a computer through the data
communication network a new stock selling and purchase order at a
new price according to the automatic trade condition when the stock
selling or purchase order is contracted according to step c),
wherein step a) is executed by a user and the steps b), c), d) are
executed without the intervention of the user; the new selling
order price in step d) is higher than the contracted price
determined in step c), and the new purchase order price in step d)
is lower than the contracted price determined in step c).
3. An automatic stock ordering method, the method of trading stocks
using a computer system connected to a data communication network,
the method comprising: a) selecting a trade-desired stock and
inputting an automatic trade condition including a purchase
condition and a selling condition in the computer system, the
automatic trade condition comprises a selling price, a selling
quantity, a purchase price and a purchase quantity; b) placing
through the data communication network one or more stock selling
order(s) orders and one or more purchase order(s) according to the
trade condition; c) determining whether or not the stock selling or
purchase order has been contracted through the data communication
network; and d) placing by the computer through the data
communication network new stock selling and purchase orders at a
new price according to the automatic stock trade condition when the
stock selling or purchase order is contracted according to step c),
wherein step a) is executed by a user and steps b), c), d) are
executed without the intervention of the user, the new selling
order price in step d) is higher than the contracted price
determined in step c), and the new purchase order price in step d)
is lower than the contracted price determined in step c).
4. The method as defined in claim 3, wherein the step of inputting
the automatic ordering condition further comprises a step of
drawing up an automatic trade table, where an automatic trade order
is generated from the base of the automatic trade table.
5. The method as defined in claim 3,wherein the automatic trade
condition includes a target profit rate and further comprises a
step of calculating a profit rate according to the automatic
trading before a computer places a new stock selling order and
purchase order in case the stock selling order or a stock purchase
order is concluded to thereafter compare same with the target
profit rate.
6. The method as defined in claim 3, wherein the automatic ordering
condition further comprises an extra trade condition.
7. The method as defined in claim 3, wherein step b) further
comprises a step of checking whether or not the trade condition has
been satisfied before placing an order, and notifying an error
notice to the user if the condition is not met.
Description
[0001] This application is a continuation of U.S. patent
application Ser. No. 09/509,326 filed Mar. 24, 2000, which is
herein incorporated by reference in its entirety.
BACKGROUDN OF THE INVENTION
Field of the Invention
[0002] The present invention relates to an automatic ordering
method and system for trading of stocks, bonds, items, futures,
options, indexes, foreign currencies through data communication
network, and more particularly to an automatic ordering method and
system by way of computer according to a predetermined condition
set by an investor.
[0003] Known are the method and system for trading articles such as
stocks, foreign exchanges, cereals, ores, futures and the like. In
the conventional method and system, an investor inputs into a
computer desired purchase (or selling) price and desired purchase
(or selling) quantity of certain articles, securities, foreign
exchanges or indexes to generate a trade order and to conclude a
trade. In this regard, trade method of articles, foreign currency
exchanges, securities, indexes and the like through a computer
network is the same as the current stock trade method through a
computer network, such that the present invention will be described
hereinafter with reference to a stock trade by way of example.
[0004] With reference to the stock trade as an example, the present
invention relates to a method and a system, where a user pre-set a
trade condition for purchase or selling order for a particular
stock, and a computer places an automatic purchase or selling order
according to the trade condition.
[0005] It has been a general practice for a stock holder to
directly order a selling or buying of a stock at a securities
company or to commission an employee at a securities company to
order a selling or buying of a stock under his or her own decision.
When a stock holder intends to order a selling or buying of stock,
he or she visits a securities company in person, calls the company,
uses a radio communication terminal provided by the company,
utilizes a personal computer communication network system or uses
an internet.
[0006] Now, recent stock trade method at a stock exchange market
(SEM) and some of the terminologies in relation to stock trade are
briefly described using the example of Korea Stock Exchange
(KSE).
[0007] As of February 1999, a stock price is based on a closing of
a previous day and can rise or fall within a range of 15% thereof.
The KSE opens at 9 in the morning during workdays except for
holidays, weekend and yearend, and closes at 3 in the afternoon. A
"daily upper limit" in the stock dealing means a price 15% soared
above the closing price of the previous day and a "daily lower
limit" defines a price 15% declined based on the closing price of
the previous day.
[0008] Purchase and sale of a stock are made from 9 a.m. when the
stock market opens to 3 p.m., but orders for stock dealing can be
reserved even from 5 p.m. to before 9 a.m. the following day after
the market is closed in case a communication by computer, ARS,
Internet and the like are utilized.
[0009] Referring to FIG. 1, a buying and selling method of stocks
after order thereto is given utilizing the communication by
computer or Internet is described hereinafter.
[0010] A stock holder uses his or her computer system 10 to connect
same to a computer system 2 of a securities company the stock
holder deals with, and to confirm a balance of an account, residual
quantity of stocks, present price or closing price of his or her
present stock. Then when the stock holder orders a buying or a
selling of a particular stock, the order is recorded in the
computer system of the securities company, which is then
transferred to a computer system 30 of the KSE after a usual
procedure necessary for the sale and purchase of the stock dealings
is processed in the securities company.
[0011] When the order of sale and purchase is received via a
network 40 from the securities company, the computer system 30 in
the KSE compares selling order price and quantity and buying order
price and quantity and allows a purchase and sale to be concluded
at a particular price.
[0012] Generally, this kind of buying and selling is repeated from
opening to closing of the stock market. This kind of method is
similarly performed when the stock holder visits the securities
company. Only difference is that a step is deleted where a stock
holder utilizes his or her computer system 10 to input a particular
data.
[0013] In order to contract this kind of deals, whether the deal is
a purchase order or a sale order, an item code of a stock to be
bought or sold, desired purchasing or selling price, desired
purchasing or selling quantity and the like should be input via a
computer or ARS by a stock holder or a staff at the securities
company.
[0014] Under the stock dealing method thus described, a
predetermined fundamental information data (by way of example,
stock account, secret number, etc) and buying/selling condition
information data (by way of example, stock item code, desired
buying/selling prices, desired buying/selling quantity, etc) should
be input via the computer system 10 or 20 by a stock holder or
staff at the securities company at every dealing time point.
Furthermore, in order to place a buying or selling order
corresponding to a particular purchase or sale, buying or selling
contract details at every moment should be monitored and an order
corresponding thereto should be timely placed.
[0015] However, there is a problem in these types of behaviors in
that lots of time are consumed and people who are busy at offices
and who can hardly spend time at securities company cannot cope
therewith.
[0016] There is another problem in that staff at the securities
company spend too much time in placing every buying or selling
order, in the view point of the securities company, too much
personal expenses are spent, and if there is any erroneous input of
necessary information data due to erroneous typing and the like,
the securities company is compelled to sustain a large amount of
economic loss.
[0017] Meanwhile, many stock investors are thinking about
provisional desired purchase price, purchase quantity, desired
selling price and selling quantity of particular stock in which
they intend to invest. However, in order to comprehend whether the
current price of the stock has reached a desired purchase or
selling price, they should be always aware of the stock price
change at the stock market. However, it is not that easy to
constantly observe the changing stock prices.
SUMMARY OF THE INVENTION
[0018] The present invention is disclosed to solve the
aforementioned problems and it is an object of the present
invention to provide an automatic ordering method and system for
allowing an investor to invest without concerning himself or
herself about stock market change and new information.
[0019] The present invention also provide an automatic ordering
method and system adapted to repeatedly place purchase and selling
orders according to predetermined conditions on behalf of investors
including individual investors and institutional investors.
[0020] In accordance with one object of the present invention there
is provided an automatic ordering method, the automatic ordering
method for trading of stocks, bonds, items, futures, options,
indexes, foreign currencies and the like through data communication
network comprises the steps of:
[0021] determining a trade-desired object and inputting an
automatic trade condition containing purchase and selling
conditions in a computer system;
[0022] issuing purchase and/or selling order(s) according to the
automatic trade conditions through the data communication
network;
[0023] discriminating whether the purchase order and/or selling
order has been contracted through the data communication network;
and
[0024] placing new purchase and/or selling order(s) by the computer
through the data communication network according to the automatic
trade conditions when either the purchase order or the selling
order is contracted.
[0025] In accordance with another object of the present invention,
there is provided an automatic stock ordering method using a
computer system connected to a data communication network, the
method comprising the steps of:
[0026] determining a trade-desired stock and inputting an automatic
trade condition including purchase and selling conditions at the
computer system;
[0027] placing through the data communication network a stock
purchase order or stock selling order according to the trade
condition;
[0028] discriminating whether or not the stock selling order or
stock purchase order has been contracted through the data
communication network; and
[0029] placing by a commuter through the data communication network
a new stock selling or purchase order according to the automatic
trade condition when the stock selling or purchase order is
contracted.
[0030] In accordance with still another object of the present
invention, there is provided an automatic stock ordering method,
the method of trading stocks using a computer system connected to
data communication network, the method comprising the steps of:
[0031] determining a trade-desired stock and inputting an automatic
trade condition including a purchase condition and a selling
condition in the computer system;
[0032] placing through the data communication network one or more
than one stock selling order(s) and one or more than one stock
purchase order(s) according to the trade condition;
[0033] discriminating whether or not the stock selling or purchase
order has been contracted through the data communication network;
and
[0034] placing by the computer through the data communication
network new stock selling and purchase orders according to the
automatic stock trade condition when the stock selling or purchase
order is contracted.
[0035] In accordance with still further object of the present
invention, there is provided an automatic ordering system of
stocks, the stock ordering system including a user computer system
connectable to a computer system at the Korea Stock Exchange
through a data communication network, the system comprising:
[0036] a user interface at the user computer system;
[0037] a memory device for storing a basic information data
including item code of stock and account number of a stock holder
input to the computer system through the user interface;
[0038] a trade condition control module for storing automatic stock
trade condition data containing desired selling price, desired
selling quantity, desired purchase price, desired purchase quantity
for trade of the stock input to the computer system through the
user interface; and
[0039] a trade order control module for discriminating whether the
automatic stock trade condition has been met and for placing a
stock trade order according to the automatic stock trade condition
through the data communication network if the condition is met.
BRIEF DESCRIPTION OF THE DRAWINGS
[0040] For fuller understanding of the nature and objects of the
invention, reference should be made to the following detailed
description taken in conjunction with the accompanying drawings in
which:
[0041] FIG. 1 is a conceptual drawing of a stock dealing system via
a network;
[0042] FIG. 2 is a conceptual block diagram for illustrating an
embodiment of an automatic ordering system of stock dealings
according to the present invention;
[0043] FIG. 3 is a flow chart for illustrating the first and the
second embodiments of an automatic ordering method of stock
dealings according to the present invention;
[0044] FIG. 4 is a user interface for illustrating the first and
the second embodiments of an automatic ordering method of stock
dealings according to the present invention;
[0045] FIG. 5 is a flow chart for illustrating the third and the
fourth embodiments of an automatic ordering method and system of
stock dealings according to the present invention;
[0046] FIG. 6 is a user interface for illustrating the third and
the fourth embodiments of an automatic ordering method and system
of stock dealings according to the present invention; and
[0047] FIG. 7 is an automatic trade table generated by the third
and the fourth embodiments according to the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0048] Preferred embodiments of the present invention will now be
described in detail with reference to the accompanying
drawings.
[0049] FIG. 2 is a conceptual block diagram for illustrating a
first embodiment of an automatic ordering system of stock dealings
or stock trade according to the present invention. In other words,
an automatic ordering system of stock dealing according to the
present invention (hereinafter referred to an "automatic ordering
system") can be embodied, as illustrated in FIG. 1, by user
computer system 10 (hereinafter referred to as "user's computer"),
a computer system of securities company 20 and a computer system of
SEM 30 mutually connected for performing data communication via a
network 40.
[0050] Furthermore, the user computer 10, where an automatic
ordering system according to the present invention can be embodied,
includes a user interface 12 for interfacing with a stock holder, a
trade (deal) condition control module 16 for storing information on
a stock holder (by way of example, name, quantity, and purchasing
price of possessed stock, and available balance and automatic trade
conditions established by the stock holder and for revising to a
new stock dealing condition according to user manipulation or
concluded deal state, and a trade order control module 14 for
issuing a dealing order of concerned stock according to the
automatic trade conditions.
[0051] Of course, the user computer 10, although not illustrated in
FIG. 2, further includes softwares such as operation system
necessary for operation of the computer system and various
applications and hardwares such as central processing unit and hard
disks. The user computer still further includes hardwares (not
shown) such as a modem, a LAN adapter for executing a data
communication with the computer system 20 at a securities company
or with the computer system 30 at the SEM and softwares such as
data communication control application and the like, and all these
are generally called as a communication control module (not
shown).
[0052] The computer system 20 at the securities company, connected
to the user computer 10 via the network 40 in order to perform a
data communication, includes an administrator's interface 22 for
interfacing with an administrator of the securities company, a deal
(trade) performing module 24 for receiving an order from the user
computer 10 and transmitting same to the computer system 30 at SEM
to thereby allow a stock dealing to be concluded, and an account
control module 26 for storing a useable balance and stock residual
quantity of stock account of a particular stock holder and for
amending same according to contracted dealings.
[0053] It should be also noted that the computer system 20 at the
securities company is further disposed with hardwares and softwares
for executing a general function as a computer system, quite
similar to those of the user computer 10.
[0054] Part or whole of modules 14 and 16 of the user computer 10
may be integrated to a computer system 20 of a securities company.
Construction may be made such that a user is simply connected to a
company of a securities company through the user interface 12.
Furthermore, in a country where it is legally allowed for a user to
directly connect to a computer system 30 of a stock market in
placing a stock trade order, the computer system 20 of a securities
company may be integrated to the user computer 10.
[0055] In case a securities company invests in a stock on behalf of
a client, hardward and software resources of the user computer 10
are integrated to the computer system 20 of the securities
company.
[0056] Next, the computer system 30 at the SEM is provided with an
administrator interface 32 for interfacing an administrator of the
SEM, a deal (trade) conclusion control module 34 for receiving and
comparing a purchase order and a selling order from each computer
system 20 at every securities company to thereafter conclude the
dealings and a stock price control module 36 for correcting the
stock price according to the concluded stock quantity and price.
The computer system 30 at the SEM further includes softwares and
hardwares for performing a general function as a computer system,
quite similar to those of the user computer 10 or computer system
20 at the securities company.
[0057] Each module illustrated in FIG. 2 performs a mutual data
communication within a computer system each module belongs to, and
a data communication is executed via the data communication control
module even among the modules included in other computer systems.
Data flow and connecting relation according to performance of these
data communication are schematically illustrated by two-way arrows
in FIG. 2. Although FIG. 2 illustrates a block diagram where the
user computer 10 is directly connected to the computer system 30 of
the SEM, it should be noted that the direct connection is not
indispensable but the user computer 10 may be connected only to the
computer system 20 of the securities company. Hardwares and
softwares for accomplishing the data communication are well known
to a person who has ordinary knowledge in a technical field to
which the present invention belongs (hereinafter referred to as "a
person skilled in the art"), and detailed description of the
hardwares and softwares will not be made here as they are not
directly necessary matters in describing subject matters of the
present invention.
[0058] It is an easy matter for a person in the art to adequately
arrange or change computer system resources between the user
computer 10, computer system 20 of a securities company and
computer system 30 of KSE. Accordingly, it should be noted that
FIG. 2 is just shown for illustrating one embodiment and a system
for embodying the present invention may be variably modified by a
person in the art.
[0059] Next, embodiments of the automatic stock ordering method and
system will be described in detail with reference to FIGS. 3, 4, 5,
6 and 7.
[0060] FIG. 3 is a flow chart for illustrating a first embodiment
of automatic ordering method according to the present
invention.
[0061] According to the first embodiment, when the automatic
ordering system starts operation, step 300, a basic data including
a stock account number, a secret number thereof, name and
registration number of stock holder, item code of possessed stock
and the like are registered through the user interface 12 of the
user computer 10 and are stored. A one-time registration of the
basic information data suffices at the initial start of the
automatic ordering system and there is no need of additional
registration unless the basic information data is to be
amended.
[0062] Next, the stock holder establishes an automatic trade
condition for selling and purchasing certain items of stocks, step
302. A user interface as shown in FIG. 4 may be provided to the
user to expedite the establishment of the automatic trade
condition.
[0063] A item code selection button 401 in FIG. 4 is selectively
provided to search or select a share to invest in. In order to
select a stock of ABC company 403 as investment item, an item code
of the ABC company 403, by way of example, `00660` 402 may be
selected or input. A referral button 404 of share price of previous
day may be selectively provided. An amount to be used for automatic
trade is entered in an amount entry column 405. The entry amount
should not necessarily accord with remainder in the stock account.
When there remains possessed stocks to be automatically traded, the
number of stocks to be automatically traded are entered in a column
406. The number of stocks entered into the column 406 should not be
necessarily the whole possessed stocks.
[0064] Establishment of initial trade condition is not part of the
present invention. The initial trade condition is the same as the
method and system provided for cyber stock investors by the current
securities companies. A referral button 407 of current share price
is a selective item. Column 408 is a button for selecting purchase
or selling. The present example has established an initial trade
where 100 shares 410 of ABC company are purchased 408 at 25,000
Korean Won per share.
[0065] The automatic trade condition is based on a presumption that
an initial trade will be contracted. In order to set up an
automatic trade condition, columns 412 and 422 for selecting
selling or purchase, columns 414, 418, 424 and 428 for selecting
unit price and quantity at fixed quantity or fixed rate, and
columns 416, 420, 426 and 430 for entering the unit price or
quantity at fixed quantity or fixed rate are provided.
[0066] The present example as a first automatic trade condition has
established a selling 412 of 100 shares 420 purchased at the
initial trade at 27,000 Won per share.
[0067] A second automatic trade condition based on the contract of
the first condition is established at purchase 422 more increased
in quantity 428 and 430 by 200% and lower unit prices 424 and 426
by 20% than those of the first trade. In other words, the condition
is buying 200 stocks at 21,600 Won per share.
[0068] These kinds of automatic trade conditions may be established
up to an appropriate number, by way of example, up to a fifth
condition or up to a tenth condition, in the same method. The
automatic trade condition is confirmed by pressing a confirmation
button 432. However, the automatic trade condition is allowed to be
changed or amended at all times by a user.
[0069] A selling order according to the predetermined first
condition is generated by computer regardless of the current share
price right after the initial trade is contracted. In other words,
a discrimination is made at step 306 in FIG. 3 as to whether the
automatic trade condition is a purchase or a selling, and if the
condition is established as selling as illustrated in FIG. 4, flow
advances to step 310 to discriminate whether the selling condition
has been met. The discrimination of the selling condition is a
discrimination as to whether established selling quantity of share
is possessed, or whether a designated selling price is within an
allowable trade range (i.e., daily upper limit and daily lower
limit).
[0070] If the condition is met, a selling order is automatically
generated by computer, step 316, and the computer discriminates
whether the selling order is contracted, step 318.
[0071] If the selling order is not contracted on the same day, same
order is generated by computer every day until the selling order is
concluded. If the order is contracted, the account remainder and
share residual quantity are amended, step 320, and the computer
discriminates whether or not the condition is met according to the
previously set-up second automatic trade condition. If the second
condition is met, a new order is immediately generated. In other
words, as soon as the first a trade is concluded, a second trade
order is actually created. A stock trade order is automatically
generated by the computer as much as the automatic trade condition
is established according to this method. When the established
automatic trade conditions are all concluded, automatic trade is
stopped. In the present invention, completion of the automatic
trade is advised to a user by an appropriate method. This method
may include beeper, E-mail, cellular telephone or the like. This
notifying method can be realized by well-know technologies.
[0072] The first embodiment includes a step 304 for receiving the
closing price of previous day and a step 312 for notifying an error
when the purchase or selling condition is not met at steps 308 and
310.
[0073] A discrimination should be made as to whether established
trade price is within the daily upper limit or daily lower limit
when the stock trade order is placed only within the limits as in
Korea, and if the order is placed out of the limits, errors 312 are
created. Furthermore, in case only partial quantity of trade order
is concluded, or trade is fulfilled at a price different from trade
order price (Handling of this case will be described later), an
instance can occur where account remainder and stock residual
quantity remain against anticipation to thereby generate an
error.
[0074] If an error happens, the automatic trade is stopped and
generation of error is advised to a user by an appropriate method.
When the error is notified, the user may change or amend the
automatic trade condition to thereafter process the automatic trade
continuously.
[0075] According to the first embodiment, it is possible for the
user to perform the trade of shares as desired without continuously
monitoring changes of the stock market.
[0076] Step 304 in FIG. 3 at the second embodiment of the present
invention includes a step for receiving the closing price of the
previous day and the present price of concerned stock as well for
comparison with the automatic trade condition. There is a
disadvantage in the first embodiment in that, when a stock trade
order is created regardless of the current price or invested money
is too much, an investment strategy may be exposed to other
investors. The second embodiment therefore makes the stock purchase
order or selling order generated when the present price at the
stock market reaches an established price of established automatic
trade condition, or makes the stock selling order created when the
present price is lower by a predetermined percentage (by way of
example, 5%) than established automatic selling price, or makes the
stock purchase order created when the current price is higher by a
predetermined percentage (by way of example, 4%) than established
automatic purchase price.
[0077] The second embodiment can be embodied by additionally
providing at the automatic trade condition establishment column of
FIG. 4 an establishment column for limiting a generated period of
time of the trade order, and by comparing the current price with
trade order generation time condition established at steps 308 and
310 in FIG. 3. Under these circumstances, if the time condition is
not met, steps 308 and 310 should be continuously checked until the
time condition is satisfied without creating an error 312. The time
condition comparison means according to the second embodiment may
be utilized by a known art to integrate a trade order control
module 14 and a trade condition control module 16 in FIG. 2.
[0078] Now, a third embodiment of the present invention will be
described with reference to FIGS. 5, 6 and 7. At though the first
and second embodiments is characterized in that either the purchase
order or selling order is automatically created according to
established automatic trade condition, the third embodiment of the
present invention is characterized in that both the purchase order
and selling order are simultaneously generated according to the
established automatic trade conditions as described later.
[0079] As illustrated in FIG. 5, a system is activated, step 500,
according to the third embodiment to set up an automatic trade
condition, step 502.
[0080] The automatic trade condition may be established by
providing an interface to a user as exemplified in FIG. 6.
Remaining portions except the automatic trade condition set-up unit
in FIG. 6 are the same as those indicated in reference numerals 401
through 410 in FIG. 4.
[0081] However, in the present embodiment, an example is given as
possessing 10,000 shares of DEF company and selling 100 shares of
DEF company at 10,000 Won per share.
[0082] A standard quantity 602 in the automatic trade condition
establishes a standard selling and purchase at every automatic
trade. Fee rates (and tax) of securities company to be paid at the
share trading are entered into a column 604, which is not essential
but conducive to calculation of profits after the stock trading.
Purchase price and selling quantity of automatic trade are
established at columns 606, 608, 610 and 612. The purchase price
may be established at a predetermined lower price or at a
predetermined lower rate than the selling price at every
trading.
[0083] An automatic purchase price lower by 500W on than the
selling price is established at every trading in FIG. 6.
[0084] Furthermore, automatic purchase quantity may be established
at a fixed rate or at a fixed quantity in column 610. If the column
612 is blank, the automatic purchase order at every trading is 100
shares as the set-up standard quantity 602. Plus(+) and minus(-)
symbols may be used in column 612, and in case of using plus(+),
the automatic purchase order quantity is increased by a fixed rate
or fixed quantity, and in case of using minus(-), the automatic
purchase order quantity is decreased by a fixed rate or by fixed
quantity.
[0085] The automatic selling condition is also set up in columns
614, 616, 618 and 620 in the same manner as above. The present
embodiment is established as automatically selling 100 shares at a
price more increased or more decreased by 1,000 Won than the
initial selling price at every trading. An extra trade condition
may be established at a fixed rate or at a fixed quantity in
columns 622 and 624. The extra trade condition will be further
described later.
[0086] The user may establish a target profit or earning rate at
column 626. If the target profit rate is not set-up, the automatic
trading continues unless stopped by the user. However, it is easy
for the computer to calculate an earning rate at every automatic
trading, and it is preferable to automatically stop the automatic
trading when a certain profit rate is earned.
[0087] The user may use a trade table application button 628 to
draw up an automatic trade table as shown in FIG. 7. However, the
automatic trade table can be imaginary, so that make-up of visual
table is selective. In other words, the system according to the
present invention can realize the third embodiment of the present
invention just by storing a formula or logic for drawing up the
automatic trade table 700.
[0088] The automatic trade table 700 in FIG. 7 is made according to
the automatic trade establishment condition in FIG. 6.
[0089] The automatic trade table 700 is made such that each selling
price in selling row 714 is less by 1,000 Won at each line thereof
while each purchase price at each purchase row 712 is less by 500
Won than each corresponding line of selling price.
[0090] On the automatic trade table 700, prices in the same lines
as in 702 through 710 are appropriately adjusted up and down on the
basis of the initial trade price.
[0091] Unlike the example in FIG. 6, in case the trade condition is
determined at a fixed rate of percentage, purchase price or selling
price of the trade table or order quantity may be created in
decimal points. However, the KSE has stipulated that shares should
be traded on a 50 Won unit base in case a share price is ranged
between 10,000 Won to 50,000 Won, to thereby limit units of trade
price and quantity, and if the stipulation cannot be observed,
share price is changed to an approximate one or rounded to amend
the trade table.
[0092] In most of cases, the trade table is adjusted to an
approximate price to cater to trade regulations of each country,
which can be automatically performed by computer, each column in
the trade table is allowed to be amended in order quantity, selling
price or purchase price as a user desires. FIG. 7 is an example not
amended or changed. The trade table 700 is confirmed by a trade
table confirmation button 716 pressed by a user.
[0093] With reference to FIG. 5, as soon as an initial selling
succeeds, a first automatic purchase order and automatic selling
order are created by the automatic trade table according to the
automatic trade condition previously set up, step 512. In the third
embodiment, it is designed "to buy the same stock at a lower price
and to sell at a higher price". Accordingly, when an initial
selling order is concluded, a purchase order at a price just below
the contracted initial selling price (10,000 Won) (i.e. purchase of
100 shares at a purchase price of 9,500 Won) is placed (see line
706 in FIG. 7), and a selling order at a price just higher than the
contracted selling price (i.e. selling of 100 shares at a selling
price of 11,000 Won) is placed (see selling column at line 704 in
FIG. 7).
[0094] These selling and purchase orders are within the account
balance and possessed number of shares, such that no errors are
generated at steps 506 and 508.
[0095] When a purchase order is contacted as ordered in a first
automatic trade order, a purchase order and a selling order
approximate to the order price contracted in the automatic trade
table 700 are generated. As previously mentioned the third
embodiment is so designed as to buy "at a lower price" than
just-contracted price "and sell at a higher price", such that a
second automatic trade order is created through steps of FIG. 5
(steps 514, 516, 506 and 508) where a purchase order (100 shares
purchased at 8,500 Won, see line 708 in FIG. 7) and a selling order
(100 shares sold at 10,000 Won) are placed.
[0096] When a selling order is concluded at the second automatic
trade order, a purchase order (100 shares bought at 9,500 Won)
close to contracted order price (10,000 Won at the second order)
and a selling order (100 shares sold at 11,000 Won) are
automatically generated at the third automatic order. In order
words, each automatic trade order generates a purchase order at a
price just lower than the contracted price at the automatic trade
table 700 and a selling order just higher than the contracted
price.
[0097] When an automatic trade is performed according to the third
embodiment, a certain profit is created in case the share price
vertically fluctuate around a price range of the initial trade
price. By way of example, in case a share price in FIG. 7 rises
from 10,000 Won to 14,000 Won and drops to 10,000 Won, a
predetermined earning is generated. Furthermore, even in case a
share price drops from 10,000 Won to 4,000 Won and rises to 10,000
Won, a certain profit is gained. As apparent from this, the third
embodiment may be an appropriate investment method for a stock
where a share price thereof frequently and vertically fluctuates at
a certain price range.
[0098] The extra trade condition in FIG. 6 may be established to
increase a selling quantity and purchase quantity in case an
automatic trade is again generated at the same price after the
automatic trade is initiated, in other words, in case a purchase
order and selling order are twice generated at the same price
according to fluctuation of the share price.
[0099] Referring to FIG. 5 again, a discrimination is made as to
whether a purchase condition and a selling condition are met by
comparing the established automatic trade condition with balance of
securities account and possessed stocks, steps 506 and 508. In
order to buy stocks, at least more money should remain in the
account than established purchase quantity multiplied by
established purchase price, and in order to sell, at least more
stocks are possessed than the desired selling quantity. In case
only purchase is continuously contracted by the automatic trade,
possessed balance in the securities account may be drained out, and
in case only selling is continuously concluded, a case may occur
where possessed stocks are drained out.
[0100] In case steps 506 and 508 are met, the automatic trade
purchase order and selling order are simultaneously generated, step
512, and in case the steps 506 and 508 are not satisfied, an error
occurs, and the occurrence of error is notified to the stock
investor by an appropriate method, step 510.
[0101] By way of example, the occurrence of error may be so
established that an error message is displayed on the user
interface or an alarm sound may be generated. Furthermore, a system
may be so constructed as to notify to the stock investor by way of
wire, wireless or pager when an error happens. These kinds of error
notifying methods may be realized by known arts.
[0102] As mentioned above, in case steps 506 and 508 are satisfied,
stock purchase order and stock selling order are created, step 512.
At this time, it should be noted that the purchase order and
selling order are generated at the same time.
[0103] The third embodiment is quite different in this regard from
the conventional stock investment method. In the third embodiment,
the current share price is disregarded and price change of stocks
is not anticipated at all.
[0104] According to the third embodiment, a certain quantity is
purchased when a share price drops compared with previously bought
share price and when the share price rises compared with the
previously purchase share price, a certain quantity is sold.
[0105] A discrimination is made as to whether or not a trade is
contracted at step 514. The contracted trade order may be either a
selling order or a purchase order, or neither order can be
contracted. In case both orders are not contracted, same purchase
order and selling order are created on the next day. Exceptional
cases such as partial contract, a contract with a price different
from an order price and the like may occur. In case of partial
contract, whole order quantity may be considered as contracted, or
a selling order and purchase order of the same price for the stocks
not contracted may be generated.
[0106] Furthermore, in case a contract is made at a price different
from the order price, a purchase order just below a contracted
price and a selling order just above the contracted price are
created.
[0107] Whichever order is concluded, account balance and stock
remainders are revised, step 516, and if condition is met according
to the automatic trade condition pre-set up at steps 506 and 508, a
new purchase order and a new selling order are immediately
generated.
[0108] In the third embodiment, a closing price is received from
the computer system 20 or the KSE computer system 30, step 504 to
use same as a discriminating reference of purchase condition and
selling condition. In case ex-dividend or the like occurs, cases
may occur where reference price is different from the closing price
of previous day. Furthermore, many exceptional circumstances such
as reduction of capital, stock split, consolidation in par value
and the like can happen in the stock market and when these cases
happen, it is necessary to automatically stop the automatic trade
by way of system.
[0109] A fourth embodiment of the present invention is a variation
of the third embodiment and is characterized in that at least two
or more than two purchase orders and at least two or more than two
selling orders are simultaneously created. In case there occur a
large volume of purchase orders or selling orders in the stock
market, trade orders in various price ranges are concurrently
concluded to rapidly and broadly change the stock prices.
[0110] In case three selling orders and three purchase orders are
set up to be simultaneously generated in the fourth embodiment,
three selling orders, each above 10,000 Won based on initial
contract price of 10,000 Won, (i.e., 100 shares sold, each at
11,000 Won, 100 shares sold, each at 12,000 Won and 100 shares
sold, each at 13,000 Won) and three purchase orders, each below
10,000 Won of initial contract price (i.e., 100 shares bought, each
at 9,500 Won, 100 shares bought, each at 8,500 Won and 100 shares
bought, each at 7,500 Won) are concurrently created, as in FIG.
7.
[0111] If any one of the six orders is contracted, balance of five
orders is immediately cancelled the moment above one contract is
concluded, and as automatic trade orders thereafter, one purchase
order and one selling order corresponding to the contract in the
third embodiment are created. The fourth embodiment is particularly
useful to reserve orders before the stock market is open and after
the stock market is closed. The fourth embodiment may be embodied
by additionally providing a column for limiting the number of
plural orders in the automatic trade condition of FIG. 6.
[0112] The first, second, third and fourth embodiments according to
the present invention are embodied by the system illustrated in
FIGS. 1 and 2. Information received from the computer system 30 of
KSE or other computer (not shown) connected to Internet is compared
with automatic trade condition priorly set up by a user according
to the trade condition control module 16 to discriminate whether or
not purchase condition and/or selling condition are/is satisfied.
As a result of the discrimination, if the condition(s) is(are) met,
a selling order and/or purchase order are(is) placed with the trade
performing module 24 of the computer system 20 at the securities
company according to the trade order control module 14.
[0113] This kind of discrimination and trade order is repeatedly
executed, with receipt of a market information on real time from
the activated start of automatic order system such that the trade
orders are placed several times in a day. Once the trade order is
placed by the trade order control module 14, the account control
module 26 discriminates whether account balance and remaining
stocks are not out of limit, and the trade order is, once placed,
transmitted to the computer system 30 of KSE by the trade
performing module 24.
[0114] The trade conclusion control module 34 at the computer
system of KSE receives the order to compare same with trade order
of other securities companies, and if an appropriate price is
formed, the trade is accomplished where the trade contract is
notified to the trade performing module 24. The trade performing
module 24 again notifies the contracted price and quantity to the
account control module 26 and the trade condition control module
14, against which the account control module 26 rectifies the
balance and remaining quantity, where the trade condition control
module 14 separately stores the actually contracted trade condition
and amends the trade condition according to the user instruction or
set-up state.
[0115] Although the present invention has been described with
reference to specific embodiments, the invention is not intended to
be limited to the embodiments disclosed, which are considered to be
purely exemplary. Although the above embodiment has described a
desired purchase price, selling price and trade quantity as
automatic trade condition of stocks, other conditions such as
increase/decrease of composite share index, increase/decrease of
stock trade volume, technical index and the like may be established
as automatic trade condition.
[0116] Furthermore, although the present invention has described
about stocks, bonds, future, options, foreign current exchanges,
grains, minerals, index swaps and the like which are traded in the
similar manner as stocks may be applied.
[0117] As apparent from the foregoing, there is an advantage in the
automatic ordering method and system for trading of stocks
according to the present invention thus described in that an
investor can reduce loss of time consumed for monitoring stock
market situation or for input of orders, while securities company
can decrease time and cost for inputting and managing the trade
orders.
[0118] There is another advantage in that a possibility of
erroneously inputting data necessary for stock trade orders can be
fundamentally ruled out to thereby prevent investment loss resulted
from the erroneous input.
* * * * *