System and method for automatic scalping a tradeable object in an electronic trading environment
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. A method for trading a tradable object in an electronic trading environment, comprising:
receiving market data for a tradeable object via a processor associated with a client device, the market data defining an inside market having at least a best bid price currently available for the tradeable object and a best ask price currently available for the tradeable object;
displaying an axis of values for the tradeable object according to the market data via an output associated with the client device;
displaying a target price indicator along the axis of values at one of a plurality of values of the axis of values associated with a target price for automatically submitting an order for the tradeable object via the output;
monitoring movement of the inside market relative to the target price to detect the inside market crossing the target price via the processor;
in response to detecting the inside market crossing the target price in a first direction, automatically submitting a first order at a first price for a first quantity of the tradeable object via the processor;
determining that at least a portion of the first quantity has been filled at the first price via the processor; and
in response to detecting that the inside market crosses the target price in a second direction, automatically submitting a second order at a second price for a second quantity of the tradeable object via the processor, wherein the second quantity offsets a position created by filling the at least a portion of the first quantity that was filled.
2. The method of claim 1 where the first direction includes a series of upward price increases and the second direction includes a series of downward price decreases.
3. The method of claim 1 where the first order comprises an order to sell and the second order comprises an order to buy.
4. The method of claim 3 where the order to buy is placed at a buy price being a first predetermined number of ticks away from the inside market and the order to sell is placed at a sell price being a second predetermined number of ticks away from the inside market.
5. The method of claim 3 where the order to sell comprises a first market order and the order to buy comprises a second market order.
6. A computer readable medium having stored therein executable instructions which when executed by a processor cause the processor to carry out a method for trading a tradable object, the method comprising:
receiving market data for a tradeable object, the market data defining an inside market having at least a best bid price currently available for the tradeable object and a best ask price currently available for the tradeable object;
displaying an axis of values for the tradeable object according to the market data;
displaying a target price indicator along the axis of values at one of a plurality of values of the axis of values associated with a target price for automatically submitting an order for the tradeable object;
monitoring movement of the inside market relative to the target price to detect the inside market crossing the target price;
in response to detecting the inside market crossing the target price in a first direction, automatically submitting a first order at a first price for a first quantity of the tradeable object;
determining that at least a portion of the first quantity has been filled at the first price; and
in response to detecting that the inside market crosses the target price in a second direction, automatically submitting a second order at a second price for a second quantity of the tradeable object, wherein the second quantity offsets a position created by filling the at least a portion of the first quantity that was filled.
7. The computer readable medium of claim 6 where the first direction includes a series of upward price increases and the second direction includes a series of downward price decreases.
8. The computer readable medium of claim 6 where the first order comprises an order to buy and the second order comprises an order to sell.
9. The computer readable medium of claim 8 where the order to buy is placed at a buy price being a first predetermined number of ticks away from the inside market and the order to sell is placed at a sell price being a second predetermined number of ticks away from the inside market.
10. The computer readable medium of claim 8 where the order to sell comprises a first market order and the order to buy comprises a second market order.