Glossary

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Immediate or cancel order (IOC)

An order requiring that all or part of the order be executed immediately after it has been brought to the market. Any portions not executed immediately are automatically cancelled.

Inflation

The creation of money by monetary authorities. In more popular usage, the creation of money that visibly raises goods prices and lowers the purchasing power of money. It may be creeping, trotting, or galloping, depending on the rate of money creation by the authorities. It may take the form of "simple inflation," in which case the proceeds of the new money issues accrue to the government for deficit spending; or it may appear as "credit expansion," in which case the authorities channel the newly created money into the loan market. Both forms are inflation in the broader sense.

Initial Margin

The percentage of the purchase price of any security, that can be purchased on margin, that the investor must pay with his/her own cash or other marketable assets.

Inter-Commodity Spread

The purchase of a given delivery month of one futures market and the simultaneous sale of the same delivery month of a different, but related, futures market.

Inter-Delivery Spread

The purchase of one delivery month of a given futures contract and simultaneous sale of another delivery month of the same commodity on the same exchange. Also referred to as a calendar spread.

Inter-Market Spread

The sale of a given delivery month of a futures contract on one exchange and the simultaneous purchase of the same delivery month and futures contract on another exchange.

In-the-Money Option

An option having intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in-the-money if its strike price is above the current price of the underlying futures contract. See Intrinsic Value.

Intrinsic Value

The amount by which an option is in-the-money. See In-the-Money Option.

Introducing Broker (IB)

A person or organization that solicits or accepts orders to buy or sell futures contracts or commodity options but does not accept money or other assets from customers to support such orders.

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