System and Method for Automatic Scalping a Tradeable Object in an Electronic Trading Environment

Abstract

A system and methods for automatic scalping in an electronic trading environment are presented. According to one embodiment, a trading application may display an indicator associated with a price level based on which a tradable object can be automatically traded. When a scalping application detects a fill associated with a first order, the scalping application may automatically enter a second order to offset a position created with the first order. According to one embodiment, the second order is automatically placed on the market when the inside market moves to a predetermined price level in relation to the displayed indicator.

1 . (canceled) 
     
     
         2 . A trading device comprising:
 an electronic monitor;   an data receiver configured to receive market data defining an inside market having at least a best bid price currently available for a tradeable object and a best ask price currently available for the tradeable object;   an electronic processor coupled with the electronic processor and the data receiver and configured to cause the electronic monitor to display:
 an axis of values for the tradeable object according to the market data, and 
 a target price indicator along the axis of values at one of a plurality of values of the axis of values, the target price indicator being associated with a target price for automatically submitting an order for the tradeable object, 
   where the electronic processor is configured to monitor the inside market relative to the target price to detect the inside market crossing the target price; and   an electronic order router coupled with the electronic processor and configured for automatically submitting a first order at a first price for a first quantity of the tradeable object in response to detection of the inside market crossing the target price in a first direction, and where in response to detection that at least a portion of the first quantity has been filled at the first price and the inside market crosses the target price in a second direction, the electronic order router is configured for automatically submitting a second order at a second price for a second quantity of the tradeable object, the second quantity offsetting a position created by a fill of the at least a portion of the first quantity.   
     
     
         3 . The trading device of  claim 2  where the first direction includes a series of upward price increases. 
     
     
         4 . The trading device of  claim 2  where the second direction includes a series of downward price decreases. 
     
     
         5 . The trading device of  claim 2  where the first order comprises an order to sell and the second order comprises an order to buy. 
     
     
         6 . The trading device of  claim 5  where the order to buy is placed at a buy price being a predetermined number of ticks away from the inside market. 
     
     
         7 . The trading device of  claim 6  where the order to buy comprises a market order. 
     
     
         8 . The trading device of  claim 5  where the order to sell is placed at a sell price being a predetermined number of ticks away from the inside market. 
     
     
         9 . The trading device of  claim 8  where the order to sell comprises a market order.