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In-elasticity |
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A characteristic that describes the interdependence of the supply, demand and price of a commodity. A commodity is inelastic when a price change does not create an increase or decrease in consumption. In-elasticity exists when supply and demand are relatively unresponsive to changes in price. |
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Initial Margin |
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Deposit required by IFX before Clients can transact any deal. |
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Inside Day |
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Day in which the price range is within the previous day's price range. |
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Inside Market/Price |
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Is the highest bid and the lowest ask (offer) at any given time for an issue. |
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Instinet |
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A method by which large institutional clients can trade stocks during non-market hours. |
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Intraday |
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Intraday data refers to price and volume information that occurs during a single trading day as opposed to daily information, which summarizes trades on a day by day basis. |
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Interbank Rates |
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The FX rates large international banks quote other large international banks. The difference between the buy and sell rate, (the spread) can be around 0.07%. Normally the public and and other businesses do not have access to these rates. IFX is one of the few companies able to provide clients with interbank rates on transactions sizes of less than $1,000,000. |
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Interest Rate Risk |
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The potential for losses arising from changes in interest rates. |
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Interest Rate Parity |
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Traditional theory of foreign exchange which states that the forward premium or discount on one currency relative to another is directly related to the interest rate differential between the two countries. Because capital controls, restraints to trade, and national economic policy may affect any or all of the variables, actual realization of the theory may be difficult. |
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Institutional Customer |
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In the financial instruments market, roughly analogous to the commercial customer in the grain trade. The institutional customer is one with large holdings in securities (long or short) who is in the market to hedge these interests. |
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In-The-Money |
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An option having intrinsic value. A call is in-the-money if its strike price is below the current price of the underlying futures contract. A put is in-the-money if its strike price is above the current price of the underlying futures contract. |
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Intrinsic Value |
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The dollar amount which would be realized if the option were to be exercised immediately. See also In-The-Money. |
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Introducing Broker (IB) |
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firm or individual that solicits or accepts commodity futures orders from customers but does not accept money, securities or property from customers. Must be registered with the Commodity Futures Trading Commission and must carry all of its accounts through an FCM on a fully disclosed basis. |
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Inverted Market |
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Futures market in which the nearer months are selling at premiums over the more distant months; characteristically, a market in which |
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Investment Banker |
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A firm that engages in the origination, underwriting and distribution of an issue. |
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Invisible Supply |
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Uncounted stocks of a commodity in the hands of wholesalers, manufacturers and producers which cannot be identified accurately; stocks outside commercial channels but theoretically available to the market. |
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Index fund |
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A mutual fund that seeks to produce the same return that an investor would get if they owned all the stocks in a particular stock index, often the Standard and Poor's 500-stock index. |
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Index Arbitrage |
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Buying or selling baskets of stocks while at the same time executing offsetting trades in stock-index futures. For example, if stocks are temporarily cheaper than futures, an arbitrager will buy stocks and sell futures to capture a profit on the difference or spread between the two prices. |
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Indexing |
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Buying and holding a mix of stocks that match the performance of a broad stock-market barometer such as the Standard & Poor's 500 stock index.
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Initial Public Offering (IPO) |
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The first time a company issues stock to the public. |
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Insider |
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A person, such as an executive or director, who has information about a company before the information is available to the public. |
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Inside trading |
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In one respect, it refers to the legal trading of a security by corporate officers based on information available to the public. In another respect, it refers to the illegal trading of securities by any investor based on information not available to the public. |
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Intermarket Trading |
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An electronic communication network linking the trading Systems (ITS) floors of the seven registered exchanges to forster competition among them in stocks listed on either the NYSE or AMEX and one or more of the regional exchanges.
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