System and Method for Money Management Using a Plurality of Profit Levels in an Electronic Trading Environment

A computer readable medium having instructions stored therein, which when executed by a processor cause the processor to carry out acts comprising:

• receiving a request to submit an order having original order parameters to an electronic exchange for trading a tradeable object according to a match algorithm of the electronic exchange;
• determining a net profit level at least in part according to market information for the tradeable object and a net position being a difference between a purchased quantity of the tradeable object by a trader during a time period and a sold quantity of the tradeable object by the trader during the time period;
• determining at least one money management parameter from a plurality of money management filters according to the net profit level;
• and
• prior to submitting the order from the client device to the electronic exchange, filtering the original order parameters according to a set of money management parameters to determine whether to submit the order with the original parameters, modify the original parameters before submitting the order, or prevent the order from being submitted.

A system for money management in an electronic trading environment, the system comprising:

• an input device configured to receive a submission for an order having original order parameters to an electronic exchange for trading a tradeable object according to a match algorithm of the electronic exchange;
• a processor coupled with the input device and configured to determine:
• a net profit level at least in part according to market information for the tradeable object and a net position, the net position being a difference between a purchased quantity of the tradeable object by a trader during a time period and a sold quantity of the tradeable object by the trader during the time period, and
• at least one money management parameter from a plurality of money management filters according to the net profit level, and
• an order processor configured to filter the original order parameters according to a set of money management parameters to determine whether to submit the order with the original parameters, modify the original parameters before submitting the order, or prevent the order from being submitted.