Apparatus and method for commodity trading with automatic odd lot hedging
US8538858B2 · kind B2 · utility
Assignee
Inventors
Key dates
| Filing date | Apr 12, 2011 |
| Grant date | Sep 17, 2013 |
| Priority date | — |
| Expiry date | Apr 12, 2031 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/04
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
Apparatus and method for trading commodities with automatic hedging for odd lot offers. The apparatus automatically accepts odd lot offers on behalf of buyers and aggregates them with other odd lot offers of the same commodity symbol until there are enough bushels to reach a predetermined threshold, or “tipping point,” which causes the system to automatically calculate the optimum number of full lot futures contracts to sell at the market price in order to offset risk associated with accepting the odd lot offers, and to automatically secure the optimum number of full lot futures contracts. The system reduces or eliminates situations where no transactions are executed due to the market's failure to reach a certain price, and reduces the buyers' exposure to slippage on accumulated odd lots.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.