Patent ID: 7672898

Claim:
A method for regulating order entry based on an acceptable slop range in an electronic trading environment comprises: receiving by a computing device a percentage value that determines an acceptable range of prices at which a trader is willing to accept to buy or sell a spread, wherein the spread comprises a first leg and a second leg, and wherein the percentage value provides that an actual cost of a particular spread, when executed, is within a consistent tolerable difference from a desired cost of the spread, regardless of a desired spread price; receiving by the computing device the desired price to buy or sell the spread, wherein the desired spread price is associated with the desired cost of the spread; placing by the computing device an order at a price in a first leg of the spread, wherein the order is based on a condition in the second leg; detecting by the computing device a change in the condition; determining by the computing device if the change in the condition would cause the spread to be bought or sold at a price outside of the acceptable range of prices and if so re-pricing the order in the first leg to maintain the desired spread price; and determining by the computing device if the change in the condition would not cause the spread to be bought or sold at a price outside of the acceptable range of prices and if not then refraining from re-pricing the order.