Invention Grant
- Patent Title: Mitigating risk associated with executing limit orders for trading securities
- Patent Title (中): 降低与执行交易性证券限价单有关的风险
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Application No.: US12030869Application Date: 2008-02-14
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Publication No.: US08645259B1Publication Date: 2014-02-04
- Inventor: Alexandr Borisovich Draganov , Franklin Milton Haas, Jr.
- Applicant: Alexandr Borisovich Draganov , Franklin Milton Haas, Jr.
- Applicant Address: US VA Reston
- Assignee: Tyche Technologies LLC
- Current Assignee: Tyche Technologies LLC
- Current Assignee Address: US VA Reston
- Agent Leo B. Kriksunov
- Main IPC: G06Q40/00
- IPC: G06Q40/00

Abstract:
Current market price, limit price, and short term volatility define the probability that the market price will reach the desired limit price and that the order will be executed. A computer implemented method estimates the probability of executing the limit price order and provides output to the investor to assist in setting the limit price in an informed way. According to an embodiment of the present invention, a computer implemented system provides the investor with prices predicted to be executable at a set of given probabilities of execution. In one embodiment, the output to the investor includes a set of limit order execution probabilities, such as 80%, 90%, 95%, or similar, and corresponding limit order set prices. In another embodiment, an investor sets the execution probability, such as 95%, which is provided as input into the system. The output to the investor includes the calculated limit price corresponding to the set execution probability.
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