System and Method for a Risk Check

A method of risk check in electronic trading comprising:

• storing a definition for a trading strategy at a computing device, wherein the trading strategy comprises buying or selling a first tradeable object, and then buying or selling a second tradeable object when the first tradeable object is either bought or sold;
• identifying, by the computing device, a first order to buy or sell the first tradeable object, wherein the first order comprises a first order quantity;
• computing, by the computing device, a second order quantity based on the first order quantity and further based on the definition, the second order quantity to be used in a second order to buy or sell the second tradeable object according to the definition;
• and
• sending by the computing device the first order to the electronic exchange when the first order quantity and the second order quantity do not exceed corresponding risk values.

A computer readable medium having instructions stored thereon for executing the method comprising:

• identifying by a computing device a first order quantity corresponding to a first order and a second order quantity corresponding to a second order, wherein the first order and the second order are part of a trading strategy, wherein the second order is placed at a second electronic exchange subsequent to detection of a match of the first order at a first electronic exchange;
• comparing by the computing device the first order quantity to a first risk value;
• comparing by the computing device the second order quantity to a second risk value;
• and
• generating by the computing device an indication when the first order quantity does not exceed the first risk value and when the second order quantity does not exceed the second risk value, wherein the first order is sent over a computer network to the first electronic exchange responsive to the indication.