Patent ID: 7620579

Claim:
A method for money management in an electronic trading environment, the method comprising: receiving an order to be sent to an electronic exchange, wherein the order is associated with a tradeable object and has order parameters comprising an order price and an order quantity; automatically electronically determining a trader's net profit/loss level for the tradeable object based on a realized profit/loss and an open profit/loss for the tradeable object, wherein the realized profit/loss represents a profit or loss based on a quantity sold at a sell price and a quantity bought at a buy price, and wherein the open profit/loss represents a possible profit or loss based on a current open position and a difference between a price to get into the current open position and a current price to close the open position based on the trader's net profit/loss level, determining a money management filter to be used to control order parameters associated with the order, wherein the money management filter comprises a filter condition that represents a maximum order quantity for a given net profit/loss level; and automatically electronically applying the money management filter having the filter condition to the order parameters before the order is sent to the exchange; automatically electronically determining that the order quantity is, greater than the maximum order quantity; responsively automatically electronically modifying the order quantity based on the maximum order quantity; and electronically sending the order to the electronic exchange, the order having order parameters that comprise the order price and the adjusted order quantity.