When we trade financial products, the number one barrier is terminologies. In addition, even general terms we use in our lives in the financial world such as stock, forex, cryptocurrencies may have different meanings. In such a case, this site has prepared a convenient term dictionary. It’s a small thing, but please refer to it when you want to find out glossaries with one hand for all investors from beginners who have just started trading to experienced people.
- Implied Rates
- Implied Volatility
- Implied Volatility Skews
- In the Money
- Inconvertible Currency
- Indicative Quote
- Indirect quote
- Industrial Production Index
- Info Quote
- Initial Margin
- Interbank Rates
- Interest Rate Floor
- Interest Rate Options
- Interest Rate Risk
- Interest Rate Swaps
- Intra Day Limit
- Intra Day Position
- Intrinsic Value
- ISDA (International Securities Dealers Association)
International Commodities Clearing House Limited, a clearing house based in London operating worldwide for many futures markets.
International Foreign Exchange Master Agreement.
International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term, and to encourage liberalization of exchange rates. The IMF helps its members to tide over the balance of payments problems by supplying the necessary loans.
International Monetary Market, part of the Chicago Mercantile Exchange that lists a number of currency and financial futures.
The interest rate determined by calculating the difference between spot and forward rates.
A measurement of the market’s expected price range of the underlying currency futures based on the traded option premiums.
Implied Volatility Skews
The implied volatility variances for different strikes of an option.
In the Money
A call option is in the money when the strike price is less than the current price of the underlying instrument. A put is when the strike price is greater.
Currency which cannot be exchanged for other currencies either because it is forbidden by the foreign exchange regulations or the currency experiences extreme volatility that it is not perceived to be a safe haven for parking the funds.
A market-maker’s price which is not firm.
See reciprocal currency.
Industrial Production Index
A coincident indicator measuring physical output of manufacturing, mining and utilities.
Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels.
Rate given for information purposes only.
The deposit required by the Broker before a client can trade/transact a particular deal in order to have some cushion in the event of default by the party.
The Forex rates large international banks quote to other large international banks. Normally the public and other businesses do not have access to these rates.
Interest Rate Floor
An agreement which provides the buyer of the floor with a minimum interest rate for future lending requirements.
Interest Rate Options
An agreement permitting a party to obtain a particular interest rate, issued both OTC and by exchanges.
Interest Rate Risk
The potential for losses arising from changes in interest rates.
Interest Rate Swaps
An agreement to exchange interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. The principal amount is notional as at the end of the tenure only cash flows related with the interest payments (whether payment or receipt) are exchanged.
Action by a central bank to affect the value of its currency by entering the market. In India the intervention by Reserve Bank of India is confined to the events of extreme volatility.
A call option is in-the-money if the price of the underlying instrument is higher than the exercise/strike price. A put option is in-the-money if the price of the underlying instrument is below the exercise/strike price.
Intra Day Limit
Limit set by bank management on the size of each dealer’s Intra Day Position.
Intra Day Position
Open positions run by a dealer within the day. Usually squared by the close.
The amount by which an option is “in-the-money”. The intrinsic value is the difference between the exercise/strike price and the price of the underlying security.
Index and Options Market part of the Chicago Mercantile Exchange.
Industrial Production Index. A coincident indicator measuring physical output of manufacturing, mining and utilities.
ISDA (International Securities Dealers Association)
Organization that foreign currency exchange banks have formed to regulate inter-bank markets and exchanges.
＊These glossaries are based on easyMarkets educational tools.