Patent ID: 7440920

Claim:
A system for estimating execution costs of a trade, comprising: one or more computer processors operable to calculate an average bid-ask spread of one or more securities; one or more computer processors operable to calculate values associated with one or more markets; one or more computer processors operable to receive and store data regarding an order size for said one or more securities; one or more computer processors operable to receive and store data regarding an average daily volume of said one or more securities traded on a specified market; one or more computer processors operable to calculate data regarding historical volatility of said one or more securities; one or more computer processors operable to calculate an estimated cost of trading said one or more securities using data comprising a first formula based on said average bid-ask spread, said values associated with one or more markets, said data regarding order size, said data regarding average daily volume, and said data regarding historical volatility; and an electronic display component, in communication with said one or more computer processors operable to calculate an estimated cost, operable to display said estimated cost, wherein said first formula comprises a first multiplicative product of at least one of said values associated with one or more markets and said average bid-ask spread.