Digital options having demand-based, adjustable returns, and trading exchange therefor

Abstract

Methods and systems for conducting demand-based trading are described. In one embodiment, states are established, each state corresponding to at least one possible outcome of an event of economic significance. An investment amount may be determined as a function of a selected outcome, a desired payout, and a total amount invested in the states. In another embodiment, an investment amount may be determined as a function of parameters of a financial product. In another embodiment, a payout may be determined as a function of an investment amount, a selected outcome, a total amount invested in the states, and an identification of a state corresponding to an observed outcome of the event.

1 - 245 . (canceled) 
     
     
         246 . A method of an investment management machine for assisting in conducting demand-based trading, comprising:
 receiving, by the investment management machine and via a computer network, an indication of at least one parameter of a financial product; and   determining and outputting, by a processor of the investment management machine, and substantially in real time, a selected outcome, a desired payout, and an investment amount of each contingent claim in a set of at least one contingent claim as a function of the at least one parameter of the financial product;   wherein the investment amount is pledged to be paid, such pledge occurring prior to any of the selected outcomes of the contingent claim, and the desired payouts are payable conditional upon a prior occurrence of the respective selected outcome.   
     
     
         247 . A method of an investment management machine for assisting in investing, comprising:
 obtaining, by an investment management machine, user-input representing a selected outcome and a desired payout, the selected outcome corresponding to at least one of a plurality of states, each state corresponding to at least one possible outcome of an event of economic significance; and   determining and outputting, by a processor of the investment management machine, an investment amount as a function of the selected outcome, the desired payout and a total amount invested in the plurality of states, and outputting the investment amount;   wherein the investment amount is pledged to be paid, such pledge occurring prior to the event of economic significance, and the desired payout is payable conditional upon and after occurrence of the selected outcome.   
     
     
         248 . A method of an investment management machine for assisting in conducting demand-based trading, comprising:
 dividing a range of possible outcomes of an event of economic significance into a plurality of states, each state representing a respective subset of the range of possible outcomes, wherein a respective subset of at least one of the states includes more that one possible outcome;   storing, by a processor of the investment management machine and in a storage device of the investment management machine, the plurality of states;   receiving, by the investment management machine and via a computer network, a plurality of investment orders, each of at least a subset of the plurality of investment orders indicating a respective desired payout and a respective selected subset of the range of possible outcomes, corresponding to at least one respective one of the plurality of states, in which to invest, wherein the indicated respective selected subsets of the range of possible outcomes differ between at least some of the plurality of investment orders;   for at least one of the orders, determining, by the processor and substantially in real time, an investment amount for the order as a function of (a) the selected subset of the range of possible outcomes and the desired payout indicated by the respective order and (b) a total amount invested in the plurality of states; and   outputting the investment amount;   wherein the investment amount is pledged to be paid, such pledge occurring prior to the event of economic significance, and, for each of the at least a subset of the plurality of investment orders, the respective desired payout is payable conditional upon a prior occurrence of the respective selected subset of the range of possible outcomes.   
     
     
         249 . A method of an investment management machine for assisting in conducting demand-based trading, comprising:
 receiving, by the investment management machine and via a computer network, an indication of at least one parameter of a financial product;   determining, by a processor of the investment management machine, for one of a plurality of investors, and substantially in real time, a selected outcome, a desired payout, and an investment amount of each contingent claim in a set of at least one contingent claim as a function of the at least one parameter of the financial product; and   outputting the selected outcomes, the desired payouts, and the investment amounts;   wherein the investment amounts are pledged to be paid, such pledges occurring prior to the outcome of the contingent claim, and, for each of the at least one contingent claim, the respective desired payout is payable conditional upon and after occurrence of the respective selected outcome.