U.S. patent application number 14/018105 was filed with the patent office on 2014-08-07 for visual representation and configuration of trading strategies.
This patent application is currently assigned to Trading Technologies International, Inc.. The applicant listed for this patent is Trading Technologies International, Inc.. Invention is credited to Michael J. Burns, Scott F. Singer, Thomas R. Zagara.
Application Number | 20140222639 14/018105 |
Document ID | / |
Family ID | 40811100 |
Filed Date | 2014-08-07 |
United States Patent
Application |
20140222639 |
Kind Code |
A1 |
Zagara; Thomas R. ; et
al. |
August 7, 2014 |
Visual Representation and Configuration of Trading Strategies
Abstract
A system and method are provided to visually represent and
configure trading strategies used in electronic trading. The system
and method may be used to visually represent, among other things,
an acceptable range of prices for a trading strategy in relation to
a graphical user interface. The acceptable range of prices may be
input by a trader to limit when one or more orders are moved from
one price to another. The acceptable range of prices can be
displayed on a graphical user interface using visual indicators.
Using the visual indicators, the acceptable range of prices can
also be configured and modified by a trader based on the trader's
preferences. Other features and advantages are described
herein.
Inventors: |
Zagara; Thomas R.;
(LaGrange, IL) ; Burns; Michael J.; (Riverside,
IL) ; Singer; Scott F.; (Lake Bluff, IL) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Trading Technologies International, Inc. |
Chicago |
IL |
US |
|
|
Assignee: |
Trading Technologies International,
Inc.
Chicago
IL
|
Family ID: |
40811100 |
Appl. No.: |
14/018105 |
Filed: |
September 4, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13737505 |
Jan 9, 2013 |
8560418 |
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14018105 |
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13461743 |
May 1, 2012 |
8423442 |
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13737505 |
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12903983 |
Oct 13, 2010 |
8195545 |
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13461743 |
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12477086 |
Jun 2, 2009 |
7835964 |
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12903983 |
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11415381 |
May 1, 2006 |
7558750 |
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12477086 |
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11095101 |
Mar 31, 2005 |
7590576 |
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11415381 |
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Current U.S.
Class: |
705/37 |
Current CPC
Class: |
G06Q 40/04 20130101;
G06Q 40/06 20130101; G06Q 40/00 20130101 |
Class at
Publication: |
705/37 |
International
Class: |
G06Q 40/04 20120101
G06Q040/04 |
Claims
1. (canceled)
2. A computer readable medium having stored therein instructions
executable by a processor, wherein the instructions are executable
to: display a plurality of indicator areas, wherein each indicator
area corresponds to a price for a trading strategy for trading a
plurality of tradeable objects; display an order indicator at an
area corresponding to a desired trading strategy price; select one
or more indicator areas of the plurality of indicator areas,
wherein the selected one or more indicator areas corresponds to
prices in a price range, wherein the price range represents a range
of prices a user is willing to accept for the trading strategy
without re-pricing an order for at least one of the plurality of
tradeable objects, wherein the price range is determined based on
the desired trading strategy price and a first parameter, wherein
the first parameter is associated with a first adjustable price
range of a plurality of adjustable price ranges, wherein the first
adjustable price range is determined based on the desired trading
strategy price; and display one or more indicators, wherein each of
the one or more indicators is displayed in the selected one or more
indicator areas.
3. The computer readable medium of claim 2, wherein the
instructions are further executable to: display a plurality of
values, wherein the plurality of values are based on market
information relating to the trading strategy, wherein each value in
the plurality of values corresponds to a price for the trading
strategy, wherein each displayed value is aligned with the
indicator area corresponding to the same price.
4. The computer readable medium of claim 2, wherein the values in
the plurality of values are prices for the trading strategy.
5. The computer readable medium of claim 2, wherein the values in
the plurality of values are derived from prices for the trading
strategy.
6. The computer readable medium of claim 2, wherein the plurality
of values are arranged in a value axis.
7. The computer readable medium of claim 6, wherein the value axis
is a static value axis.
8. The computer readable medium of claim 2, wherein the plurality
of indicator areas are aligned next to the corresponding displayed
values.
9. The computer readable medium of claim 2, wherein the plurality
of indicator areas are aligned at least partially overlapping the
corresponding displayed values.
10. The computer readable medium of claim 2, wherein the trading
strategy is a spread.
11. The computer readable medium of claim 2, wherein the one or
more indicators is a single indicator.
12. The computer readable medium of claim 11, wherein the single
indicator is displayed to span the selected one or more indicator
areas corresponding to the prices in the price range.
13. The computer readable medium of claim 11, wherein the single
indicator is displayed in the indicator area corresponding to one
of the highest price in the price range and the lowest price in the
price range.
14. The computer readable medium of claim 2, wherein the one or
more indicators is one indicator displayed in each of the selected
one or more indicator areas corresponding to the prices in the
price range.
15. The computer readable medium of claim 2, wherein the one or
more indicators is a highest indicator and a lowest indicator,
wherein the highest indicator is displayed in the indicator area
corresponding to the highest price in the price range, wherein the
lowest indicator is displayed in the indicator area corresponding
to the lowest price in the price range.
16. The computer readable medium of claim 2, wherein the first
parameter is one of an inside slop parameter, an outside slop
parameter, and a slop range parameter.
17. The computer readable medium of claim 2, wherein the
instructions are further executable to: select one or more second
indicator areas of the plurality of indicator areas, wherein the
selected one or more second indicator areas correspond to prices in
a second price range, wherein the second price range represents a
second range of prices a user is willing to accept for the trading
strategy without re-pricing an order for at least one of the
plurality of tradeable objects, wherein the second price range is
determined based on the desired trading strategy price and a second
parameter, wherein the second parameter is associated with the
first adjustable price range; and display one or more second
indicators, wherein each of the one or more second indicators is
displayed in the selected one or more second indicator areas.
18. The computer readable medium of claim 17, wherein the second
parameter is one of an inside slop parameter, an outside slop
parameter, and a slop range parameter.
19. The computer readable medium of claim 17, wherein the first
parameter is an inside slop parameter and the second parameter is
an outside slop parameter.
20. The computer readable medium of claim 2, wherein the
instructions are further executable to: receive a command to adjust
an indicator; determine a value for the first parameter based on
the received command; and update the first parameter to the
determined value.
21. The computer readable medium of claim 20, wherein the command
is received from a user input device manipulating the adjusted
indicator.
22. The computer readable medium of claim 21, wherein the command
is received from a mouse dragging an edge of the adjusted indicator
to another indicator area.
23. The computer readable medium of claim 21, wherein the command
is received from a mouse moving the indicator.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 13/737,505 filed Jan. 9, 2013, which is a
continuation of U.S. patent application Ser. No. 13/461,743 filed
May 1, 2012, now U.S. Pat. No. 8,423,442, which is a continuation
of U.S. patent application Ser. No. 12/903,983 filed Oct. 13, 2010,
now U.S. Pat. No. 8,195,545, which is a continuation of U.S. patent
application Ser. No. 12/477,086 filed Jun. 2, 2009, now U.S. Pat.
No. 7,835,964, which is a continuation of U.S. patent application
Ser. No. 11/415,381 filed May 1, 2006, now U.S. Pat. No. 7,558,750,
which is a continuation of U.S. patent application Ser. No.
11/095,101 filed Mar. 31, 2005, now U.S. Pat. No. 7,590,576, the
contents of all of which are fully incorporated herein by
reference.
FIELD OF INVENTION
[0002] The present invention is directed towards electronic
trading. Specifically, the present invention is directed to tools
for trading products that can be traded with quantities and/or
prices.
BACKGROUND
[0003] Electronic trading includes a host exchange that has a
central computer in which bids and offers are received and
executed, if a match exists between them. The host exchange
provides a summary of the bids and offers for viewing by those
traders that have access to the system. The traders can monitor
their screens and freely enter bids or offers, which are then
communicated to the host exchange.
[0004] The host exchange generally offers many tradeable objects to
trade. As used herein, the term "tradeable object," refers simply
to anything that can be traded with a quantity and/or price. It
includes, but is not limited to, all types of tradeable events,
goods, and financial products. For instance, stocks, options,
bonds, futures, currency, and warrants, as well as funds,
derivatives and collections of the foregoing, and all types of
commodities, such as grains, energy, and metals may be considered
tradeable objects. A tradeable object may be "real," such as
products that are listed by an exchange for trading, or
"synthetic," such as a combination of real products that is created
by the user. A tradeable object could actually be a combination of
other tradeable object, such as a class of tradeable objects.
[0005] For each tradeable object, the host exchange generally
provides information to interested parties on how the tradeable
object is traded at the exchange. Included in this information are
the types of messages that can be communicated with the host
exchange. At one level, the host exchange provides information on
the message headers, payload, and trailers necessary to interface
the exchange. Beyond that, the host exchange provides information
on how to open a connection, obtain market information, add an
order, change an order, delete an order, close a connection, and so
on. The information provided by a host exchange can be as simple or
complex as the exchange deems necessary to offer its particular
tradeable objects for trade.
[0006] Each trading network or trading station is then provided
with the same sort of information from the host exchange in its
data feed. At each trading station is application software that is
run to collect certain pieces of information from this data feed
and it is displayed to the trader. From this display, a trader may
view this information and make decisions on whether to enter an
order, modify an order, or perform some other trading related
operation. Sometimes the decisions regarding a trader's particular
trading strategy are performed by a computer itself given initial
instruction by the trader.
[0007] In such an electronic marketplace, it becomes desirable to
offer a trading tool that can assist a trader in making trades.
BRIEF DESCRIPTION OF THE DRAWINGS
[0008] Many aspects of the present embodiments may be better
understood with reference to the following drawings. The components
in the drawings are not necessarily to scale, emphasis instead
being placed upon illustrating example embodiments:
[0009] FIG. 1 is a block diagram illustrating an example network
configuration for a communication system utilized to access one or
more electronic exchanges;
[0010] FIG. 2 is a block diagram illustrating a system for
facilitating the automatic trading of spreads over the example
network shown in FIG. 1 according to an example embodiment;
[0011] FIG. 3 is a block diagram illustrating an example spread
configuration window utilized in accordance with the example system
shown in FIG. 2;
[0012] FIG. 4 is a block diagram illustrating an example basic slop
configuration window utilized in accordance with the example system
shown in FIG. 2;
[0013] FIG. 5 is a block diagram illustrating an example spread
window configured to use basic slop in accordance with the example
system shown in FIG. 2;
[0014] FIG. 6 is a block diagram illustrating an example spread
window displaying visual representation of basic slop according to
an example embodiment;
[0015] FIG. 7 is a block diagram illustrating an example advanced
slop configuration window utilized in accordance with the example
system shown in FIG. 2;
[0016] FIG. 8 is a block diagram illustrating an example spread
window configured to use advanced slop in accordance with the
example system shown in FIG. 2;
[0017] FIG. 9 is a block diagram illustrating an example spread
window displaying visual representation of advanced slop according
to an example embodiment;
[0018] FIG. 10 is a block diagram illustrating a display of a
spread window with visual representation of where an order could be
re-priced according to another example embodiment; and
[0019] FIG. 11 is a block diagram illustrating a spread market
window displaying an alert icon.
DETAILED DESCRIPTION
I. Overview
[0020] In electronic trading, a trader may trade one or more
tradeable objects at any given time. There are all sorts of ways to
place orders to buy or sell these tradeable objects. For instance,
the trader might place an order through the display screen of a
trading station, or the trader might set up an automated trading
tool that can enter an order according to the trader's predefined
instruction. Regardless of whether the trader manually places the
order through her trading station or the computer places the order,
the trader may wish to regulate the placement of the order.
[0021] There are tools to regulate certain types of order entry.
For instance, U.S. patent application Ser. No. 10/137,979,
entitled, "System and Method for Performing Automatic Spread
Trading," provides a mechanism for regulating order entry, referred
to as "slop." Slop, among other things, allows a trader to input
certain parameters that are used to determine whether an order
should be placed in the market. Building off that concept, U.S.
patent application Ser. No. 10/403,333, entitled, "System and
Method for Variably Regulating Automatic Order Entry in an
Electronic Trading System," provides advanced features to variably
regulate the order entry process. While these concepts are
described more in the present application, the entire contents of
each application, namely App. No. 10/137,979 and application Ser.
No. 10/403,333, are incorporated herein by reference.
[0022] Generally, once programmed, trading tools that regulate
order entry may often do so with or without the trader's notice of
its action. This is because the trader may predefine the parameters
in advance of the action actually taking place. The present
application describes various example embodiments that can be
employed by trading tools, particularly those that use slop or
slop-type concepts, to effectively inform the trader as to the
current settings of these parameters and why certain actions of the
computer may or may not be taking place. The example embodiments
may also be used in manual-style trading by effectively assisting
the trader in regulating order entry. Regardless of whether the
trading tool is manual or automatic in nature, the example
embodiments can effectively increase the knowledge and userability
of an order regulatory feature found in a trading tool.
Additionally, the example embodiments preferably do so without
providing unnecessary clutter on the trading screen.
[0023] While the example embodiments are described herein with
reference to illustrative embodiments for particular applications,
it should be understood that the example embodiments are not
limited thereto. Other systems, methods, and advantages of the
present embodiments will be or become apparent to one with skill in
the art upon examination of the following drawings and description.
It is intended that all such additional systems, methods, features,
and advantages be within the scope of the present invention, and be
protected by the accompanying claims.
II. Hardware and Software Overview
[0024] As will be appreciated by one of ordinary skill in the art,
the example embodiments may be operated in an entirely software
embodiment, in an entirely hardware embodiment, or in a combination
thereof. However, for sake of illustration, the example embodiments
are described in a software-based embodiment, which is executed on
a computer device. As such, the example embodiments take the form
of a computer program product that is stored on a computer readable
storage medium and is executed by a suitable instruction system in
the computer device. Any suitable computer readable medium may be
utilized including hard disks, CD-ROMs, optical storage devices, or
magnetic storage devices, for example.
[0025] FIG. 1 is a block diagram illustrating an example system 100
that can be used to facilitate communication between an electronic
exchange and a client device. The system 100 includes a client
device 102, gateway 104, and host exchange 106. System 100 also
includes a plurality of communication links 112, 114, and 116
between the client device 102, gateway 104, and host exchange 106.
While FIG. 1 shows two connections between the client device 102
and the gateway 104, it should be understood that a single
connection could be used as well. Similarly, one connection could
exist between the gateway 104 and the host exchange 106. During a
trading session, market data 108, in the form of messages, may be
relayed from the host exchange 106 over the communication links 116
and 112 to the client device. As illustrated in FIG. 1,
intermediate devices, such as gateway(s) 104, may be used to
facilitate communications between the client device 102 and the
host exchange 106. It should be understood that while FIG. 1
illustrates the client device 102 communicating with a single host
exchange 106, in an alternative embodiment, the client device 102
could establish trading sessions to more than one host
exchange.
[0026] The market data 108 contains information that characterizes
the tradeable object's order book including, among other
parameters, order related parameters, such as price and quantity,
and the inside market, which represents the lowest sell price (also
referred to as the best or lowest ask price), and the highest buy
price (also referred to as the best or highest bid price). In some
electronic markets, market data may also include market depth,
which generally refers to quantities available for trading the
tradeable object at certain buy price levels and quantities
available for trading the tradeable object at certain sell price
levels.
[0027] In addition to providing the tradeable object's order book
information, electronic exchanges can offer different types of
market information such as total traded quantity for each price
level, opening price, last traded price, last traded quantity,
closing price, or order fill information. It should be understood
that market information provided from an electronic exchange could
include more or fewer items depending on the type of tradeable
object or the type of exchange. Also, it should be understood that
the messages provided in the market data 108 may vary in size
depending on the content carried by them, and the software at the
receiving end may be programmed to understand the messages and to
act out certain operations.
[0028] A trader may view the information provided from an exchange
via one or more specialized trading screens created by software
running on the client device 102. Upon viewing the market
information or a portion thereof, a trader may wish to take
actions, such as send orders to an exchange, cancel orders at the
exchange, or change order parameters, for example. To do so, the
trader may input various commands or signals into the client device
102. Upon receiving one or more commands or signals from the
trader, the client device 102 may generate messages that reflect
the actions taken, generally shown at 110. It should be understood
that different types of messages or order types can be submitted to
the host exchange 106, all of which may be considered various types
of transaction information. Once generated, user action messages
110 may be sent from the client device 102 to the host exchange
over communication links 114 and 116.
[0029] The client device 102 may use software that creates
specialized interactive trading screens on the client device 102.
The trading screens enable the traders to enter and execute orders,
obtain market quotes, and monitor positions while implementing
various trading strategies including those previously used on the
floor of an exchange. Such strategies incorporated into an
electronic marketplace can improve the speed, accuracy, and
ultimately the profitability of trading electronically. One such
trading strategy is spread trading.
[0030] The range and quality of features available to the trader on
his or her trading screen varies according to the specific software
application being run. In addition to or in place of the
interactive trading screens, the client device 102 may run
automated non-interactive types of trading applications.
[0031] A commercially available trading application that allows a
user to trade in environments like those shown in FIG. 1 and
subsequent figures is X_TRADER.RTM. from Trading Technologies
International, Inc. of Chicago, Ill. X_TRADER.RTM. also provides an
electronic trading interface, referred to as MD Trader.TM., in
which desired orders and bid/ask quantities are displayed in
association with a static price axis or scale. Portions of the
X_TRADER.RTM. and the MD Trader.TM.-style display are described in
U.S. Pat. No. 6,772,132 entitled "Click Based Trading With
Intuitive Grid Display of Market Depth," filed on Jun. 9, 2000,
U.S. patent application Ser. No. 09/971,087, entitled "Click Based
Trading With Intuitive Grid Display of Market Depth and Price
Consolidation," filed on Oct. 5, 2001, and U.S. patent application
Ser. No. 10/125,894, entitled "Trading Tools for Electronic
Trading," filed on Apr. 19, 2002, the contents of each are
incorporated herein by reference. While it may be preferred to
employ an MD Trader.TM. type screen, a person of ordinary skill in
the art will recognize that the example embodiments described
herein are not limited to any particular type of trading
application.
III. Automatic Spread Trading Overview
[0032] The example embodiments are described with particular
reference to spread trading and trading tools that assist a trader
in spread trading. However, as pointed out earlier, the present
invention is not limited for use with an automated spread trading
tool, but may be applied to any particular trading tool that has an
order entry system where limiting the frequency at which orders are
placed or re-priced in the market may be beneficial. For instance,
another type of trading tool that has an automated order entry
system and may benefit using the preferred embodiments is described
in U.S. patent application Ser. No. 10/284,584, filed on Oct. 31,
2002 and entitled, "System and Method for Automated Trading," the
contents of which are incorporated herein by reference. One skilled
in the art may readily adapt the example embodiments to work with
this type of automated trading tool, for instance, or some other
type of trading tool using the teachings described herein.
[0033] To assist in understanding how an automated spread trading
tool might work, a general description is provided below. However,
an automated spread trading tool and its functions are described in
greater detail and may be referenced in an already incorporated
U.S. patent application Ser. No. 10/137,979, filed on May 3, 2002
and entitled, "System and Method for Performing Automatic Spread
Trading."
[0034] According to the example embodiments, a trader selects the
individual tradeable objects underlying the spread, referred to
herein as the "legs" of the spread. Generally, a "spread" is the
purchase or sale of one or more tradeable objects and an associated
purchase or sale of one or more other tradeable objects, in the
expectation that the price relationships will change so that
subsequent offsetting trades potentially yield a net profit. An
automated spread trading application, referred to herein as the
automatic spreader, generates spread data based on information in
the legs and based on spread setting parameters, which are
configurable by the trader. The spread data is communicated to a
graphical user interface ("GUI manager" 218) where it is displayed
in a spread window. The spread window could also display data
related to each leg of the spread. The data related to each leg of
the spread may also be displayed in separate windows from the
spread window. At the client device, the trader can enter orders in
the spread window, and the automatic spreader will automatically
work the legs to achieve (or attempt to achieve) the spread. It
should be understood that those skilled in the art of trading are
familiar with a wide variety of spread trading techniques, and the
present embodiments are not limited to any particular type of
spread trading technique.
[0035] FIG. 2 is a block diagram illustrating an example system 200
for facilitating the automatic trading of spreads. The system 200
includes an applications program interface ("API") 206 that
translates market data 208 for one or more tradeable objects to an
appropriate data format, referred to as market data feed(s) 202,
which are communicated between the different exchanges and trading
applications hosted on the client devices. Client devices may be
computing devices such as personal computers, laptop computers,
hand-held devices, and so forth. The system 200 preferably supports
a plurality of exchanges and client devices.
[0036] A client device 212 is shown in more detail to illustrate
the interaction between its software and/or hardware components.
The client device 212 includes a trading application 210, a slop
application manager 214, an automatic spreader 216, and a GUI
manager 218. While only four components are shown, it should be
understood that the client device 212 could include additional
components as well. In one example embodiment, the trading
application 210 and the automatic spreader 216 are software
applications hosted on the client device 212. Although the
automatic spreader 216 is shown together with the trading
application 210, it should be understood that the automatic
spreader 216 and the trading application 210 may be the same
software application or separate software applications on the same
or different terminals. Alternatively, the automatic spreader 216
and/or the trading application 210 can be hosted on a server and
accessed by the client devices 212 over a network.
[0037] In one example embodiment, a trader can configure the
automatic spreader 216 to use slop functionality. Slop is used as a
means of regulating order entry that can occur in the individual
legs of a desired spread order in the automatic spreader 216. Two
example types of slop are basic slop and advanced slop, which will
be described in greater detail below. The slop application manager
214 can be configured to directly communicate with the automatic
spreader 216. Alternatively, the slop application manager 214 could
be included in the automatic spreader 216. As will be described in
greater detail below, the slop application manager 214 can be
configured by the user to have a plurality of inside and outside
slop values, also known as the acceptable slop ranges, which are
used to determine when a desired spread order should be re-priced
in the spread window. The GUI manager 218 is a software
application, as shown in FIG. 2, but preferably may work with
hardware components such as an input device like a mouse, keyboard,
or touch screen, and an output device like a monitor, for
example.
[0038] In general, as shown in FIG. 2, market data feeds (for
tradeable objects) are communicated from the API 206 to the trading
application 210 where they are stored and continuously updated (or
periodically updated). Using some or all of the market data feeds
and the spread setting parameters, the automatic spreader 216
generates spread data 220. The spread data 220 preferably includes
spread price, and spread market depth, but may alternatively
include other items of interest to the user such as the last traded
price (LTP) and the last traded quantity (LTQ). The spread data 220
is communicated to the GUI manager 218 where it can be displayed in
a spread window and traded.
[0039] Before a trader starts trading, the trader may configure
spread parameters to be used by the automatic spreader 216. FIG. 3
is a block diagram illustrating an example spread configuration
window 300 that can be used to configure spread parameters for
trading spreads. The spread configuration window 300 includes two
individual legs 304 and 306 respectively, although any number of
legs may be added to the spread configuration window 300. In one
example embodiment, the spread configuration window 300 includes
many spread parameters that can be set by a trader to customize the
spread data feed. As such, the spread parameters may control the
behavior of the spread as it is generated and/or displayed and/or
traded, depending on the particular parameter. An example list of
spread parameters is provided here. The "Spread Name" 302 provides
the name of the spread and/or the names of the underlying tradeable
objects. Moreover, the names of the legs are displayed in the "Leg"
fields 304 and 306. Alternatively, a trader can personalize the
spread by renaming the spread and/or legs to have any desired name.
Other parameters include "Inside Slop" 308, "Outside Slop" 310,
"Leg Color ID" 312, "Implied Spread Price" 314, "Net Change" 316,
"Customer Account" 318, "Active Quoting" 320, "Adjust for Market
Depth" 322, "Offset with" 324, "Payup Ticks" 326, "Spread Ratio"
328, "Spread Multiplier" 330, "Offset Volume Multiplier" 332, "Use
Cancel/Replace rather than Change" 334, "Price Reasonability check
on leg" 336, and "Slop" 338. A trader may select "OK" 340 when the
spread has been configured to open a spread window and individual
leg windows. It will be appreciated by those skilled in the art
that the parameters above may be flexible and/or change as
circumstances dictate because of the wide range of products that
can be traded using the automatic spreader. Moreover, the columns
of the spread configuration window 300 can be dragged and dropped
such that the user can re-arrange the order of the legs.
IV. Basic Slop Overview
[0040] Generally, slop is used as a means of controlling the rate
at which the working leg orders on a spread are changed in the
outright markets. Slop may be used to avoid excessive quoting that
can result in the assessment of transaction fees by certain
exchanges. It is also helpful when maintaining a position in the
order queue at an electronic exchange. The implementation of slop
results in the creation of a price range above and below your
desired spread price at which you are willing to be filled. The
slop values apply to the spread price and not to the individual leg
prices. Basic Slop configuration uses one level of Inside and
Outside slop to determine when to re-price the quoted outright legs
based upon movement in the market.
[0041] The inside and outside slop values are understood to be the
acceptable price range set by the trader. The inside slop value
generally defines the worst prices (the highest in the case of the
spread bid and the lowest in the case of a spread offer) a trader
is willing to accept for a spread, and the outside slop generally
defines the best price (the lowest in the case of a spread bid and
the highest in the case of a spread offer) the trader is willing to
accept for a spread. A slop value of 0 indicates that the legs will
be re-quoted every time the market prices in the individual legs
move. The larger the slop value, the larger the slop range will be.
Larger slop values allow for more market fluctuation before the
automatic spreader re-quotes the legs.
i) Basic Slop Example
[0042] Referring back to FIG. 3, using the spread configuration
window 300, a trader may quickly activate basic slop and input the
inside and outside slop parameters at 308 and 310, respectively.
Another way to activate basic slop is to select Slop button 338
which will activate the slop configuration window 400 shown in FIG.
4. FIG. 4 is a block diagram illustrating an example basic slop
configuration window 400 that can be used to configure basic slop
parameters. The basic slop configuration window 400 can be used to
define the values for the basic slop parameters, inside and outside
slop, using fields 402 and 404, respectively. Icons 406 and 408 are
used to accept or cancel changes made to the slop configuration
window 400.
[0043] FIG. 5 is a block diagram illustrating an example spread
window 500 configured with basic slop parameters. Spread window 500
displays a working quantity column 502, bid quantity column 504,
ask quantity column 506, and price column 508. The working quantity
column 502 displays desired orders to buy or sell the spread. The
bid quantity column 504 displays buy order quantities associated
with the price levels in price column 508. The ask quantity column
506 displays offer order quantities associated with the price
levels in price column 508. The price column 508 shows price levels
in one tick increments (prices can be positive or negative). It
should be understood that the prices levels or tick increments in
the price column are statically displayed, that is, they do not
normally change positions. The price column is displayed
corresponding to the working bid and working ask columns which are
dynamically displayed, that is they move up and down to reflect
market activity. To assist in understanding how static and dynamic
columns work a general description is provided in an already
incorporated U.S. Pat. No. 6,772,132, entitled "Click Based Trading
with Intuitive Grid Display of Market Depth," filed on Jun. 9,
2000.
[0044] Spread window 500 assumes that a trader has desired spread
offer order 510 at a price of -49.00 and a desired spread bid order
512 at a price of -53.0. Assuming that this example involves the
two leg spread as defined in FIG. 3, the spread bid corresponds to
a bid in a first leg and an offer in a second leg. Similarly, the
spread offer corresponds to an offer in the first leg and a bid in
the second leg. Let's assume that a trader used the slop
configuration window 400 of FIG. 4 to set the inside slop value to
2 and the outside slop value to 2. Based on the slop settings, the
acceptable slop range for the desired spread offer order 510 would
be between would be between -47.5 and -50.0, as shown at 514.
Similarly, the acceptable slop range for the desired spread bid
order 512 would be between -52.0 and -54.5, as shown at 516.
According to this example, the desired spread acceptable range
values can be calculated as follows:
For the spread bid: Inner Price=-53.0+2 ticks=-52.0
Outer Price=-53.0-3 ticks=-54.5
For the spread offer: Inner Price=-49.0-2 ticks=-50.0
Outer Price=-49.0+3 ticks=-47.5
V. Visual Representation of Basic Slop
[0045] One or more slop ranges may be visually represented in
relation to a spread order interface such as spread window 500
shown in FIG. 5. A trader could configure the visual representation
of the basic slop parameters via the slop configuration window 400
shown in FIG. 4. After configuring the inside slop and outside slop
values, the trader can then select visual indicators to represent
the values in relation to the spread window. According to one
example embodiment, a trader could select and activate visual
indicators to be used in relation to slop parameters via the slop
configuration window 400. To do that, a trader could right or left
click on each respective field 402 and 404, which may then activate
another window or menu defining a plurality of visual indicators
that could be used to visually indicate the slop range.
Alternatively, another selection icon could be provided in the slop
configuration window 400, and the icon could be used to activate
another interface that a trader could used to select a visual
indicator. It should be understood that a trader may define all or
only some of the slop ranges to be visually represented in relation
to the spread window. Also, many different embodiments could be
used to visually represent a slop range. For example, one or more
visual indicators, such as shading, brackets, lines, or two
separate indicators corresponding to the highest value and the
lowest value of the slop range could be used.
i) Visual Representation of Basic Slop Example
[0046] FIG. 6 is a block diagram illustrating an example spread
window 600 configured to visually represent basic slop parameters.
Spread window 600 displays a working quantity column 602, bid
quantity column 604, ask quantity column 606, and price column 608.
The working quantity column 602 displays desired orders to buy or
sell the spread. The bid quantity column 604 displays buy order
quantities available in relation to certain price levels in price
column 608. The ask quantity column 606 displays offer order
quantities available in relation to certain price levels in price
column 608. The price column 608 shows price levels in one tick
increments (prices can be positive or negative).
[0047] Spread window 600 displays example visual indicators,
configured using the method previously described, to visually
represent the inside and outside slop ranges corresponding to the
desired spread orders 618 and 620. Desired spread offer order 618
corresponds to visual indicators 610 and 612. Visual indicator 610
corresponds to the outside slop parameter 404 shown in FIG. 4,
which was defined with a value of 3. Visual indicator 612
corresponds to inside slop parameter 402 shown in FIG. 4, which was
defined with a value of 2. Similarly, the desired spread bid order
620 corresponds to visual indicators 614 and 616. Visual indicators
614 and 616 correspond to the inside and outside slop parameters
402 and 404 shown in FIG. 4, respectively.
[0048] A trader utilizing the configured visual representation in
the spread window 600, can visually identify that the desired
spread offer order 618 has an outside slop range from -47.5 to
-48.5 and an inside slop range from -49.5 to -50.0. Likewise, a
trader can visually identify that the desired spread bid order 620
has an inside slop range from -52.0 to -52.5 and an outside slop
range from -53.5 to -54.5. As explained above, it should be
understood that many different embodiments could be used to display
a visual indicator associated with a slop range. The arrangement of
the visual indicators shown in FIG. 6 provides one way to display
them; however, the present invention is not so limited, as
understood by a person skilled in the art.
[0049] It is not necessary for the visual indicators to always be
displayed. As such, the visual indicators may be displayed when a
new desired spread order is entered and/or displayed, such as in
the spread window 600. For example, spread window 600 currently
displays desired orders 618 and 620 with the corresponding visually
represented slop ranges 610, 612, 614, and 616, respectively. If
additional orders were entered by a trader, then the spread window
600 would display additional order indicators in the working
quantity column 602 and the corresponding slop ranges for each
order. Alternatively, the visual indicators can be displayed based
on, for example, a trader action, keystroke, audio input, or market
event. In addition to visual indicators illustrating a slop range,
numerical values that were used to determine the slop range could
be displayed as well.
VI. Advanced Slop Overview
[0050] Rather than setting a single range of inside and outside
slop parameters for each leg of the spread, such as described in
the Basic Slop Overview section, with respect to basic slop, a
trader could set more than one range of inside and outside slop
parameters and adjustable range parameters. The concept of using
more than one range of inside and outside slop parameters will be
referred to hereinafter as "advanced slop".
[0051] According to advanced slop, a trader can define inside slop,
outside slop, and adjustable range parameters. An adjustable range
is defined as a plurality of ranges, with each range being
associated with a set of inside and outside slop parameters. When a
spread order is entered at a price level within a defined
adjustable range, then a set of inside and outside slop parameters
associated with that adjustable range will be used to evaluate
whether a leg order should be moved or re-priced to maintain the
desired spread order price. Likewise, if a spread order is entered
at a price level associated with another adjustable range, then the
set of inside and outside slop parameters corresponding to that
range will be used to evaluate whether a leg order should be moved
or re-priced to maintain the desired spread order price. By using
advanced slop, a trader could variably and more flexibly control
order entry of trading systems, and in particular, automated or
semi-automated trading tools. A more detailed description of
re-pricing and advanced slop functionality is provided in an
already incorporated in U.S. patent application Ser. No.
10/403,333, filed on Mar. 31, 2003 and entitled "System and Method
for Variably Regulating Automatic Order Entry in an Electronic
Trading System."
[0052] FIG. 7 is a block diagram illustrating an example advanced
slop configuration window 700 that can be used to configure
advanced slop parameters. The advanced slop configuration window
700 can be used to define the values for inside slop, outside slop
in relation to a plurality of and one or more adjustable ranges.
Slop configuration window 700 displays one example set of
parameters that could be defined for advanced slop. In particular,
slop configuration window 700 displays three ranges (although one
or more ranges may appear, if so programmed) and their
corresponding inside slop parameters, outside slop parameters, and
adjustable range parameters, although any number of ranges may be
configured by the user. The parameters in slop configuration window
700 can be used in relation to both buy spread orders and sell
spread orders. However, alternatively, different ranges could be
defined for buy and sell spread orders. When a desired spread order
falls within a configured range, then that range's inside and
outside slop parameters are preferably used to evaluate whether a
leg order should be moved or re-priced to maintain the desired
spread order price.
[0053] According to slop configuration window 700, there are three
ranges 702, 708, and 714, although any number of ranges could be
defined based on trader preferences. For example, only one range
might be used, or only two ranges, or four ranges, and so on. Also,
only one inside or outside slop parameter may be used, if so
desired. Range 702 has an inside slop parameter and an outside slop
parameter that can be specified using fields 704, 706,
respectively. Range 708 has inside slop and outside slop parameters
that can be specified using fields 710, 712. Then, range 714 has
inside slop and outside slop parameters that can be specified using
fields 716, 718. If the trader wants to add an additional range, he
or she can select icon 720. If the trader wants to delete a range,
he or she can select the range and select icon 722. Icons 724 and
726 are used to accept or cancel changes.
[0054] Referring to FIG. 7, if a trader wanted the first adjustable
range to encompass 4 price levels or ticks from the best bid and
best offer, the trader could select the range 1 parameter 702 and
enter a value of 0. Then, in the range 2 parameter 708, the trader
could enter a value of 4, thus creating the first adjustable range,
range 1, 0.ltoreq.X<4. Any buy or sell spread order entered in
range 1 would then use inside and outside slop parameters 704 and
706, respectively. Alternatively, as mentioned above, different
slop values could be defined for buy and sell orders.
[0055] A trader may wish to set one or more ranges of inside and
outside slop parameters and one or more adjustable ranges. Once the
trader has configured one range, slop configuration window 700
shown in FIG. 7 can be used to configure a second range. If the
trader wants the second adjustable range to encompass 4 price
levels or ticks past the first configured adjustable range, the
trader could select the field 714 and enter a value of 8. Entering
a value of 8 in the range 3 parameter would thus create the second
adjustable range, range 2, 4.ltoreq.X<8. Any buy or sell spread
order entered in range 2 would the use inside and outside slop
parameters 710 and 712, respectively.
[0056] Since there are only three ranges defined in this example
embodiment, the value defined in the field 714 can be used as a
starting point of range 3, with range 3 being 8 X<.infin.. Any
buy or sell spread order entered in range 3 would then use inside
and outside slop parameters 716 and 718, respectively.
[0057] Alternatively, the ranges could correspond to integer price
levels. For example, for any buy spread orders, range 1 might
include integer price levels -50, -51, -52, -53, and -54 rather
than tick levels used directly above. For any sell spread orders,
range 1 might include integer price levels -50, -49, -48, -47, and
-46. The example embodiments may utilize any unit of measure to
define the ranges and therefore the example embodiments are not
limited to the increments used or described herein.
[0058] According to one embodiment, the ranges for buy spread
orders preferably start from the best offer, and the ranges for the
sell spread orders preferably start from the best bid. Moreover,
the buy side ranges could start from the best bid or some other
designated reference point (e.g., last traded price (LTP), last
traded quantity (LTQ), a theoretical price, or some other reference
point), and the sell side ranges could start from the best offer or
some other designated reference point (e.g., last traded price
(LTP), last traded quantity (LTQ), a theoretical price, or some
other reference point). Therefore, it should be understood that the
example embodiments are not limited to where a range starts and
ends or what price levels a range is referenced from.
i) Advanced Slop Example
[0059] FIG. 8 is a block diagram illustrating an example spread
window 800 configured for advanced slop. The display 800 shows a
working quantity column 802, bid quantity column 804, ask quantity
column 806, and price column 808. The working quantity column 802
displays desired orders to buy or sell tradeable objects. The bid
quantity column 804 displays bid quantities associated with the
price levels in price column 808. The ask quantity column 806
displays ask quantities associated with the price levels in price
column 808. The price column 808 shows price levels in one tick
increments (prices can be positive or negative).
[0060] FIG. 8 shows a plurality of range levels determined based on
a slop range definition described in reference to FIG. 7. The
ranges are shown using brackets for ease of illustration. As
previously described, if a desired spread order price falls within
one of the ranges, then the parameters corresponding to that range
apply. For any buy spread orders, range 1, 0.ltoreq.X<4
corresponds to price levels or ticks -50.5, -51.0, -51.5, and
-52.0. Note that some other price unit may be used instead of 0.5
increments. Similarly, for any sell spread orders, range 1,
0.ltoreq.X<4, corresponds to price levels or ticks -50.5, -50.0,
-49.5, and -49.0. For any buy spread orders, range 2,
4.ltoreq.X<8, corresponds to price levels -52.5, -53.0, -53.5,
and -54.0. For any sell spread orders, range 2, 4.ltoreq.X<8,
corresponds to price levels -48.5, -48.0, -47.5, and -47.0. For any
buy spread orders, range 3, 8.ltoreq.X<.infin., corresponds to
price levels -54.5, -55.0, -55.5, -60.0, and so on. For any sell
spread orders, range 3, 8.ltoreq.X<.infin., corresponds to price
levels -46.5, -46.0, -45.5, -45.0, and so on.
[0061] Accordingly, the sell spread order at price -49.0, falls in
one of the price levels in range 1. Range 1, as defined in FIG. 7,
is associated with the inside slop parameter value of 2 and with
the outside slop value of 3. The defined slop values would then be
used in relation to the spread order at the price of -49.0.
Likewise, the buy spread order at price -53.0, falls in one of the
price levels in range 2. Let's assume that a trader also used the
slop configuration window 700 of FIG. 7 to set the inside slop
value of 2 and outside slop value of 2 in relation to Range 2.
VII. Visual Representation of Advanced Slop
[0062] Just as a trader could enable the visual representation of
the basic slop ranges, a trader could may also enable the visual
representation of the advanced slop. When a trader defines advanced
slop parameters, one or more corresponding slop ranges could be
visually represented in relation to the automatic spreader
interface such as spread window 800 shown in FIG. 8. A trader could
activate and configure the visual representation of the advanced
slop parameters via the slop configuration window 700 shown in FIG.
7. As described in the previous section, the advanced slop
parameters available for trader configuration are inside slop,
outside slop, and adjustable range. After configuring the inside
slop and outside slop parameters, and the adjustable range
parameters, the trader may then specify visual indicators to be
used. According to one example embodiment a trader may select and
activate visual indicators to be used in relation to slop
parameters corresponding to each range via the slop configuration
window 700. To do that, a trader could select each respective
adjustable range field 702, 708, or 714, such as right or left
clicking on each respective field. Likewise, a trader could select
inside or outside slop fields 704, 706, 710, 712, 716, or 718 to
select and activate visual indictors. The selection of each field
could then activate another window or menu defining a plurality of
visual indicators that could be selected to visually represent the
slop range.
[0063] Similarly to the visual indicators used in relation to the
basic slop, it should be understood that a trader may define all or
only some of the advanced slop ranges to be visually shown in
relation to the spread window. It should also be understood that
many different embodiments could be used to display an advanced
slop range. For example, one or more graphical indicators, such as
shading, brackets, lines, or two separate indicators corresponding
to the highest value and the lowest value of the slop range could
be used.
i) Visual Representation of Advanced Slop Example
[0064] FIG. 9 is a block diagram illustrating an example spread
window 900 displaying visual representation of advanced slop.
Spread window 900 displays a working quantity column 902, bid
quantity column 904, ask quantity column 906, and price column 908.
The working quantity column 902 displays desired orders to buy or
sell the spread. The bid quantity column 904 displays buy order
quantities associated with the price levels in price column 908.
The ask quantity column 906 displays offer order quantities
associated with the price levels in price column 908. The price
column 908 shows price levels in one tick increments (prices can be
positive or negative); however, different tick increments could be
selected as well.
[0065] Spread window 900 also displays example visual indicators,
configured using the method previously described, to visually
represent the inside and outside slop ranges and the adjustable
ranges corresponding to the desired spread orders 926 and 928.
Desired spread offer order 926 was entered at price level -49.0
which falls within range 1 as defined in the slop configuration
window 700. Since desired spread offer order 926 was entered in
range 1, it is associated with inside and outside slop values of 3
and 2, respectively, also defined in slop configuration window 700.
Desired spread offer order 926 is located within range 1 which is
visually represented by visual indicator 920. The outside and
inside slop values corresponding to the spread offer order 926 are
shown using an outside slop visual indicator 910 and an inside slop
visual indicator 912. Desired spread bid order 928 was entered at
price level -53.0 which falls within range 2 as defined in the slop
configuration window 700. Since desired spread bid order 928 was
entered in range 2, it is associated with inside and outside slop
values of 2 and 2, respectively, also defined in slop configuration
window 700. Desired spread bid order 928 is located within range 2
which is visually represented by visual indicator 922. The inside
and outside slop values corresponding to spread bid order 928 are
shown using an inside slop visual indicator 914 and an outside slop
visual indicator 916. Although no desired spread order is shown in
relation to range 3, range 3 is visually represented by visual
indicator 924.
[0066] A trader utilizing the configured visual representation
shown in the spread window 900, can visually determine that the
desired spread offer order 926 has an outside slop range of -47.5
to -48.5 and an inside slop range -49.5 to -50.0. Likewise, a
trader can visually determine that the desired spread bid order 928
has an inside slop range of -52.0 to -52.5 and an outside slop
range of -53.5 to -54. As explained above, it should be understood
that many different embodiments could be used to display a visual
indicator associated with a slop range. It should also be
understood that the visual indicators can be displayed when a
desired spread order is displayed in the spread window 900. For
example, spread window 900 currently display desired orders 926 and
928 with the corresponding visually represented slop ranges 910,
912 and 914, 916, respectively. If additional orders were entered
by a trader, then the spread window 900 would display additional
orders in the working quantity column 902 and the corresponding
slop ranges for each order. Alternatively, the visual indicators
can be activated based on, for example, a trader action, keystroke,
audio input, or market event. It should also be understood that the
trader can configured how the ranges can be displayed for example
by visual indicators or display values for the ranges.
VIII. Modification of Slop Parameters
[0067] In another embodiment, a trader can modify the inside slop,
outside slop, or adjustable range parameters from the spread window
900 instead of using slop configuration window 700. To do this a
trader can select the visual indicator to either modify the value
or to modify the location. For instance, to increase the inside
slop value from 2 to 3, a trader could select visual indicator 912
shown in FIG. 9 by selecting the lower edge of the visual indicator
and drag it towards the price -50.5. Likewise, to increase the
outside slop value of outside slop visual indicator 916 from 2 to
3, a trader could selecting the lower edge of the visual indicator
and drag it towards the price -54.5. A trader can also modify an
adjustable range parameter by dragging either the top edge or lower
edge to either increase or decrease the value. For example, a
trader could decrease the range associated visual indicator 920 by
selecting either the top edge or the lower edge and dragging it
either towards the price -49.5 or -51.5. In this example, selecting
either edge would modify the size of the adjustable range. If the
trader selected the top edge and dragged it towards the price of
-49.5, the adjustable range would change the range from
0.ltoreq.X<4 to 0.ltoreq.X<3. Modifying the value of one
range could automatically modify the values of the adjacent range.
For example, if visual indicator 920 was modified as described
above, the adjacent range, displayed as visual indicators 918 and
922, would change from having a range of 4.ltoreq.X<8 to having
a range of 3.ltoreq.X<8. As previously described in detail, the
example embodiments are not limited to where a range starts and
ends or what price levels a range is referenced from. The
adjustable ranges for the ask side and the bid side can be
independent of each other and could be modified independently of
each other.
[0068] Additionally, in another embodiment, a trader could set the
inside slop, outside slop, or adjustable range parameter from the
spread window 900 instead of activating the slop configuration
window. Using the same the same technique of dragging as described
above, the trader could select the price levels to associate with
the inside slop, outside slop or adjustable range parameters. Once
the prices levels were selected they could be visually represented
as shown in FIG. 9. The trader could then modify the ranges as
previously described.
[0069] It should be understood that the values associated with the
visual indicators can be selected to increase, decrease, or
completely modify the position of the inside slop, outside slop, or
adjustable range parameters. The ability to modify the inside slop,
outside slop, and adjustable range parameters from the spread
window 900 allows a trader to more efficiently monitor their
desired orders without the need to activate an additional screen to
change parameters that are currently in use.
IX. Visual Representation of Effective Spread Price
[0070] As shown in relation to the preceding figures, when a trader
enters a desired spread order price, the automatic spreader
automatically places orders (leg orders) in the appropriate legs to
achieve or attempt to achieve the desired spread price. The
automatic spreader may, among, other things, calculate the
quantities and the prices for the leg orders based on market
conditions in the other legs. As the market conditions for each leg
move, an effective spread order price may be calculated. The
effective spread order price refers to the price where the spread
could be achieved if the leg orders were filled at that moment in
time.
[0071] Using a conventional automated spread trading tool, if the
effective spread order price is different from the desired spread
order price, then the automated spread trading tool would move or
re-price one or more of the leg orders to maintain the desired
spread order price. Using slop, while the effective spread order
price is within the acceptable range (e.g., such as defined by
inside and/or outside slop), then the leg orders are not moved or
re-priced. If the effective spread order price falls outside of the
acceptable range, then one or more leg orders are moved or
re-priced to maintain the desired spread order price.
[0072] The automatic spreader displays an indicator at the desired
spread order price to graphically represent the trader's desired
spread price. Additionally, an indicator may be displayed at the
effective spread order price to graphically represent the spread
price that the trader would get if the leg orders were filled at
that moment in time. The indicator may be displayed in the same
column or field as the indicator representing the desired spread
order price (e.g., distinguished by graphics or color), or
alternatively, the effective spread order price indicator may be
displayed at some other location.
[0073] Without an effective spread order price indicator, once the
spread is achieved, the indicator representing the desired spread
order price disappears from the spread window, the trader may be
left not knowing the achieved spread price. However, with an
effective spread order price indicator, it is more likely that the
trader will know the achieved spread price. Additionally, the
trader can visually compare the effective spread order price
indicator with the slop indicators to determine whether the
effective spread order price is within the acceptable range of
prices.
i) Visual Representation of Effective Spread Price Example
[0074] FIG. 10 is a block diagram illustrating an example display
of spread window 1000 that visually represents an effective spread
order price icon in relation to a desired spread order price icon.
Spread window 1000 displays a working quantity column 1002, bid
quantity column 1004, ask quantity column 1006, and price column
1008. The working quantity column 1002 displays desired orders to
buy or sell tradeable objects. The bid quantity column 1004
displays buy order quantities associated with the price levels in
price column 1008. The ask quantity column 1006 displays offer
order quantities associated with the price levels in price column
1008. The price column 1008 shows price levels in one tick
increments (prices can be positive or negative).
[0075] Window 1000 also displays a desired spread sell order at
-49.0 which is located in range 1 and desired spread buy order at
-53.0 which is located in range 2. Range 1 and range 2 are
determined based on the advanced slop parameters defined in
relation to the earlier Figures. The trader has configured range 1
to encompass price levels that would be acceptable for the spread
order to be filled at, specifically -49.0, -49.5, -50.0, and -50.5.
The trader has also configured range 2 to encompass price levels
that would be acceptable for the spread orders to be filled at,
specifically -52.5, -53.0, -53.5, or -54.0. Visual indicator 1010
represents the effective spread order price for the desired spread
order entered at -49.0. Likewise, visual indicator 1012 represents
the effective spread order price of the desired spread order
entered at -53.0. The desired spread order price indicators at
-49.0 and -53.0 are is still displayed because they have not yet
been filled. Let's assume that based on the current market
conditions corresponding to the individual legs of the spread, the
effective spread order price for desired spread order at -49.0 is
-50.5. Likewise, let's assume that based on the current market
conditions corresponding to the individual legs of the spread, the
effective spread order price for the desired order at -53.0 is
-54.0. If the individual leg orders were filled during such market
conditions, the desired spread order at -49.0 may be filled at
-50.5 instead of -49.0, and the desired spread order entered at
-53.0 may be filled at -54.0 instead of -53.0.
[0076] It is understood that there are a number of ways to
associate the effective spread order price indicator with the
desired spread order price indicator. For example, color coding,
shading, text, or any other mechanism may associate the indicators
so that a trader will preferably know the relationship between the
indicators.
X. Visual Representation of Effective Price
[0077] In another example embodiment, an effective price indicator
could be shown in relation to the effective prices of orders in the
individual legs of the spread. Rather than calculating an effective
spread order price, the automatic spread could calculate effective
prices of orders in each leg of the spread. In particular, as the
market conditions for each leg move, the effective prices of orders
in the other legs may be calculated such that the desired spread
price being sought by the trader can be maintained. Using a
conventional automatic spreader, if the effective prices of the leg
orders are different from the prices of the leg orders, then the
automatic spreader would move or re-price the leg orders. However,
in this embodiment, the effective price indicator could visually
represent the effective prices of the individual leg orders and
where they would be re-priced to maintain the desired spread
price.
[0078] In another example embodiment, an effective price indicator
may also be used when slop is not enabled. When an automatic
spreader re-prices a working leg order, the effective price
indicator may be used to indicate the price at which the working
leg order will be moved. Therefore, if there is some delay in
deleting and replacing the working leg order, a trader can visually
see before the order is actually re-priced, where the working leg
order will be moved. While this is particularly useful when slop is
not enabled, it may also be used when slop is enabled especially
during those times that the working leg order is actually re-priced
(e.g., the effective spread order price indicator falls outside the
acceptable range of prices, and the working leg order gets
re-priced to maintain the desired spread price).
XI. Conditional Display of Visual Indicators
[0079] While some traders may wish to continuously view indicators
associated with slop ranges, inside and outside slop, others may
want to view them only upon detecting certain conditions. The
conditions could take many different formats, including detecting
certain user inputs, such as, for example, locating a user input
device in certain areas of the trading interface, detecting
predetermined keystrokes, audio inputs, or yet some other inputs.
According to one example embodiment, to activate some or all
indicators, a trader could position a mouse in relation to a
desired spread order, which could then activate the display of
visual indicators of the inside slop, outside slop, or adjustable
range associated with that desired order. It should be understood
that the example embodiments are not limited to displaying all
visual indicators upon detecting certain user inputs, and a trader
could define which indicators the trader wishes to view.
XII. Alerts
[0080] In another example embodiment a trader may wish not to view
the visual indicators in relation to a spread trading interface,
such as spread window 1100 as shown in FIG. 11. Instead, a trader
may pre-configure a number of audio alerts with defined sounds to
be used in relation to one or more ranges. Alerts can be activated
by a trader's desired spread orders moving in and out of the
configured acceptable slop ranges. Alternatively, alerts can be
activated by an outside source.
[0081] In another embodiment, audio alerts can be provided
automatically or a trader could manually select an alert icon 1110,
as shown in FIG. 11, which could provide an alert indicating
whether or not slop is enabled in the specific spread window.
[0082] An alternative to an alert sounding when an order moved in
or out of an acceptable price range, an alert could sound to notify
the trader when changes have been made to the actual inside slop,
outside slop, or adjustable range parameters. It should be
understood that the present embodiment is not limited to providing
any specific alert when changes or movement in relation to inside
slop, outside slop or adjustable range parameters occurs. Further,
the type of alert can be configurable by the trader.
CONCLUSION
[0083] The above description of the example embodiments,
alternative embodiments, and specific examples, are given by way of
illustration and should not be viewed as limiting. Also, many
changes and modifications within the scope of the present
embodiments may be made without departing from the spirit thereof,
and the present invention includes such changes and
modifications.
[0084] It will be apparent to those of ordinary skill in the art
that methods involved in the system and method for providing
trading information in relation to a plurality of trade levels may
be embodied in a computer program product that includes one or more
computer readable media. For example, a computer readable medium
can include a readable memory device, such as a hard drive device,
a CD-ROM, a DVD-ROM, or a computer diskette, having computer
readable program code segments stored thereon. The computer
readable medium can also include a communications or transmission
medium, such as, a bus or a communication link, either optical,
wired or wireless having program code segments carried thereon as
digital or analog data signals.
[0085] The claims should not be read as limited to the described
order or elements unless stated to that effect. Therefore, all
embodiments that come within the scope and spirit of the following
claims and equivalents thereto are claimed as the invention.
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