Patent ID: 7020632

Claim:
A trader-controlled trading system for implementation on a computer network, said trading system comprising: (a) a computer network comprising a host computer having access to database means for recording attributes of bids placed by traders, a plurality of remote terminals, and network means allowing bi-directional communications between the host computer and each of said remote terminals; (b) a trading instrument concerning a stated subject matter, each unit of said trading instrument having a fixed face value and further having two opposing sides that respectively represent mutually exclusive outcomes regarding a subject matter of said trading instrument; (c) software means for enabling traders as users of said remote terminals to view attributes of said trading instrument and to place, with said host computer, bids to purchase at least one unit of a specified side of said trading instrument, and further providing for each mid bid placed by a trader to specify a selected one of said two sides, to specify a bid price per trading instrument unit that is less than a fixed face value, and to specify a selected quantity of trading instrument units; and (d) software bid matching means for declaring a matched trade between a first bid placed to purchase at least one unit of one side of said trading instrument and a second bid placed to purchase at least one unit of the opposing side of said trading instrument where a sum of the prices per unit specified in said first and second bids are in an aggregate at least equal to a face value of said trading instrument.