Patent ID: 7707098

Claim:
A method for money management in an electronic trading environment, the method comprising: receiving market data for a tradeable object from an electronic exchange via a client device, the market data including at least market updates for a current highest bid price for the tradeable object and a current lowest ask price for the tradeable object; receiving a request to submit an order from the client device to the electronic exchange via a user input associated with the client device, wherein the order has original parameters and the request is for submitting the order to the electronic exchange for order matching according to an execution algorithm of the electronic exchange against at least one other order for the tradeable object submitted to the electronic exchange; determining a net position for a trader for the tradeable object via a processor associated with the client device, the net position determined according to a difference between a purchased quantity of the tradeable object by the trader during a time period and a sold quantity of the tradeable object by the trader during the time period; determining a net profit level for the trader for the tradeable object via the processor, the net profit level determined at least in part according to the net position and the current market data for the tradeable object; determining a set of money management parameters for controlling the order parameters via the processor according to the net profit level; and prior to submitting the order from the client device to the electronic exchange for order matching according to the execution algorithm of the electronic exchange, filtering the order parameters according to the set of money management parameters via the processor, where the order is prevented from being submitted to the electronic exchange and being matched against at least one other order for the tradeable object in response to determining to reject the order according to the set of money management parameters, where at least one of the original parameters is modified to a modified parameter and the order having the modified parameter is submitted from the client device to the electronic exchange in response to determining that the at least one original parameter is modifiable according to the set of money management parameters, and where the order having original parameters is submitted from the client device to the electronic exchange according to the set of money management parameters.