Method and apparatus for portfolio trading using margin

A method for enabling a user to purchase a portfolio of assets, rights or liabilities having a riskiness characteristic specifiable by the user comprising:

• providing a predetermined portfolio of assets, rights or liabilities;
• receiving a user specified riskiness characteristic and a user's investment funds;
• determining an amount of the predetermined portfolio of assets, rights or liabilities that must be purchased on margin so that a resulting riskiness characteristic of a resulting portfolio matches the user specified riskiness characteristic;
• and
• purchasing the determined amount of the predetermined portfolio of assets, rights or liabilities on margin along with an amount of the predetermined portfolio of assets, rights or liabilities purchased with the user's investment funds.

A method for creating a portfolio of investments for one or more investors comprising:

• creating a portfolio of investments having a plurality of predetermined investments each of which comprise a predetermined weight of the portfolio, wherein said portfolio has a known risk factor;
• receiving one or more portfolio orders from the one or more investors, each of said portfolio orders including an investor specified risk factor and an investor supplied investment amount;
• calculating, for each of the one or more portfolio orders, a portion of the predetermined portfolio that must be purchased on margin or a portion of the investment amount that must be held in a less risky investment vehicle to obtain the user specified risk factor for a resulting portfolio;
• and
• purchasing the calculated amount, if any, of the predetermined portfolio on margin and purchasing an amount of the predetermined portfolio with funds equal to the investment amount less any calculated amount to be invested in the less risky investment vehicle.

A method for creating, managing and trading a portfolio of assets, rights and/or liabilities comprising:

• receiving one or more portfolio orders to trade one or more portfolios of assets, rights and/or liabilities from each of one or more users, said one or more orders including at least one margin order to trade one of the one or more portfolios of assets, rights and/or liabilities involving a user specifiable amount of margin;
• converting the one or more portfolio orders into a plurality (m) of individual orders for each of the one or more assets, rights and/or liabilities;
• converting the plurality of individual orders in each of the one or more assets, rights and/or liabilities into one or more fewer (n) individual orders in each of the plurality of assets, rights and/or liabilities, wherein 1≦n<m;
• and
• forwarding the one or more fewer orders of each of the assets, rights and/or liabilities to a market for each of the assets, rights and/or liabilities.

An apparatus for managing and trading portfolios of assets, rights and/or liabilities comprising:

• a computer including a display and a user interface;
• and
• a computer readable media having encoded thereon instructions causing the computer to create a portfolio of assets/rights and/or liabilities with a user specifiable riskiness characteristic by:
• determining an amount of a desired portfolio of assets/rights/liabilities that must be purchased on margin so that a riskiness characteristic of a resulting portfolio matches a user specified riskiness characteristic;
• and
• purchasing the determined amount of the desired portfolio of assets/rights/liabilities on margin.

An apparatus for managing and trading portfolios of assets, rights and/or liabilities comprising:

• a processor;
• and
• a computer readable media having encoded thereon instructions causing the processor to enable a user to purchase a portfolio of assets, rights or liabilities having a riskiness characteristic specifiable by the user comprising:
• providing a predetermined portfolio of assets, rights or liabilities to the user;
• receiving a user specified riskiness characteristic and a user's investment funds;
• determining an amount of the predetermined portfolio of assets, rights or liabilities that must be purchased on margin so that a resulting riskiness characteristic of a resulting portfolio matches the user specified riskiness characteristic;
• and
• purchasing the determined amount of the predetermined portfolio of assets, rights or liabilities on margin along with an amount of the predetermined portfolio of assets, rights or liabilities purchased with the user's investment funds.

An apparatus for enabling a one or more investors to create investment portfolios comprising:

• a processor;
• and
• a computer readable media having encoded thereon instructions causing the processor to:
• provide a predetermined plurality of investments as a single investment portfolio available for purchase by said investors, wherein said single investment portfolio has an associated riskiness characteristic;
• and
• modify the associated riskiness characteristic to each user's specified riskiness characteristic by adjusting an amount of the single investment portfolio to be purchased on margin by said each user.

An apparatus for creating a portfolio of investments for one or more investors comprising:

• a processor;
• and
• a computer readable media having encoded thereon instructions causing the processor to:
• create a portfolio of investments having a plurality of predetermined investments each of which comprise a predetermined weight of the portfolio, wherein said portfolio has a known risk factor;
• receive one or more portfolio orders from the one or more investors, each of said portfolio orders including an investor specified risk factor and an investor supplied investment amount;
• calculate, for each of the one or more portfolio orders, a portion of the predetermined portfolio that must be purchased on margin or a portion of the investment amount that must be held in a less risky investment vehicle to obtain the user specified risk factor for a resulting portfolio;
• and
• purchase the calculated amount, if any, of the predetermined portfolio on margin and purchasing an amount of the predetermined portfolio with funds equal to the investment amount less any calculated amount to be invested in the less risky investment vehicle.

An apparatus for creating, managing and trading a portfolio of assets, rights and/or liabilities comprising:

• a processor;
• and
• a computer readable media having encoded thereon instructions causing a processor to:
• receive one or more orders to trade one or more portfolios of assets, rights and/or liabilities from each of one or more users;
• receive from at least one of the one or more users a margin order to trade one of the one or more portfolios of assets, rights and/or liabilities using a user specifiable amount of margin;
• aggregate each of the one or more assets, rights and/or liabilities in each of the one or more portfolios to obtain fewer orders of assets, rights and/or liabilities;
• and
• forward the fewer orders of assets, rights and/or liabilities to a market for each of the assets, rights and/or liabilities.