(54) SYSTEM AND METHOD FOR MONEY
MANAGEMENT USING A PLURALITY OF
PROFIT LEVELS IN AN ELECTRONIC
TRADING ENVIRONMENT
(75) Inventors: Robert A. West, Chicago, IL (US);
Michael J. Burns, Chicago, IL (US);
Peter F. Ziemkiewicz, Chicago, IL (US);
Ryan J. Highland, Chicago, IL (US)
(73) Assignee: Trading Technologies International
Inc., Chicago, IL (US)
( * ) Notice: Subject to any disclaimer, the term of this patent is extended or adjusted under 35 U.S.C. 154(b) by 67 days.
(21) Appl.No.: 11/415,846
(22) Filed: May 2, 2006
(65) Prior Publication Data
US 2006/0247997 Al Nov. 2, 2006
Related U.S. Application Data
(63) Continuation of application No. 10/447,382, filed on May 29,2003, which is a continuation-in-part of application No. 10/355,471, filed on Jan. 31, 2003.
(51) Int. CI.
G06Q 40/00 (2006.01)
(52) U.S. CI 705/35; 705/37
(58) Field of Classification Search 705/35 45
See application file for complete search history.
(56) References Cited
U.S. PATENT DOCUMENTS 4,674,044 A * 6/1987 Kalmusetal 705/37
A system and method for money management in an electronic trading environment are presented. According to one embodiment, a money management application intercepts an order before the order is sent to an exchange, and determines a plurality of P/L levels, based on which the money management application then selects a set of money management parameters to be used to control or modify order parameters before the order is sent to the exchange. The plurality of profit levels may include a net profit level determined based on a trader's net position and a current market level, a realized profit level determined based on trader's sells and buys associated with the tradeable object, or an open profit level determined based on the realized and net profit levels. The set of money management parameters may include a maximum order quantity and a maximum net position so that, for example, if the order quantity associated with the order is higher than the maximum order quantity associated with the applicable set of money management parameters, the order quantity may be modified to the maximum order quantity.
16 Claims, 15 Drawing Sheets
