| Insider Trading |
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| Trading carried out by people who have access to non public price sensitive information. |
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| Implied volatility |
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| The variance of returns on an asset that is implied by equating the observed and theoretical prices of an option on that asset. |
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| Index fund |
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| An institutional investment portfolio that aims to replicate the performance of a chosen market index. |
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| Index option |
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| An option written on a stock index. |
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| Index participation |
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| The trading of baskets of shares corresponding to those in some specified market index. The buyer of the index participation pays immediately in exchange for a promise by the seller to deliver the shares (or their cash equivalent) at one of a number of subsequent dates, chosen by the buyer. Also know as an Exchange Traded Fund (ETF). |
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| Initial margin |
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| The �good faith� deposit of the cash or securities which a user of futures market must make with his or her broker when purchasing or selling futures contracts, as a guarantee of contract fulfilment. |
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| Inside information |
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| Private and confidential information, usually acquired through a position of trust, that is likely to have an impact on security prices when made public. |
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| Insider trading |
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| Dealing on the basis of inside information. |
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| In-the-money |
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| A call option is in-the-money if the strike price is less than the market price of the underlying security. A put option is in-the-money if the strike price is greater than the market price of the underlying security. |
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| Intrinsic value |
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| The amount by which an option is in-the-money. |
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| Initial Public Offering (IPO) |
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When an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public is known as Initial Public Offering. |
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