Tool for estimating a cost of a trade

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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C705S038000

Reexamination Certificate

active

07440920

ABSTRACT:
The invention relates to a tool for estimating a pre-trade implementation shortfall for financial instruments. Through evaluating a number of factors, including the size of the order, the average daily volume of the stock, the average bid-ask spread of the stock, the volatility of the stock and the exchange on which the stock trades, the present invention estimates the cost of a trade. Using the disclosed system and method, a trader or fund manager may determine when and how to implement trades of varying size.

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