A system and method for providing a linear spread in an electronic trading
environment are described. According to one example embodiment, a trading
system can receive market information associated to a trading strategy,
known as a spread. The trader may also define a market volatility
parameter to utilize in the calculation of a linear spread price axis.
The received market information and a divide spread algorithm are also
used to determine the linear spread price axis. The trading application
determines a linear spread price axis, at which price levels are
separated by consistent linear tick increments. The linear spread price
axis allows for more efficient and effective trading in the electronic
trading environment especially when certain tradeable objects are traded
or when certain spread algorithms, like the divide spread algorithm, are
utilized.