Trading terms glossary
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I

Iceberg order
An Iceberg order divides large orders into smaller segments. They are often used by traders for the purpose of hiding the full order quantity in order to minimise market disruption. 

Ichimoku Cloud
The Ichimoku Cloud is a technical analysis indicator that shows support and resistance levels, as well as momentum and trend direction. Roughly translated from Japanese, ‘Ichimoku Kinko Hyo’ means ‘one look equilibrium chart,’ meaning traders can receive an array of information with just one look.

In the money
In the money (ITM) is defined by an option’s state of ‘moneyness’. More specifically, it refers to when an option goes beyond its strike price, giving it an intrinsic value of more than $0.

Index
An index is a measure of something. In trading, an index is a grouping of financial assets that are used to give a performance indicator of a particular sector. 

Indices trading
Indices trading refers to traders’ endeavors to make money on the price movements of indices. 

Inflation
Inflation is the increase in the cost of goods and services in an economy, or the decline in the purchasing power of money (devaluing of currency). 

Learn more about Inflation.

Interest
Interest is the charge levied against a party for borrowing money, which can be either a cost or a means of making profit for a trader. In trading, it can also refer to the amount of ownership a stockholder has in a company. 

Interest rates
The amount that a lender charges to a borrower for the loan of an asset. The rate is expressed as a percentage of the loan. 

Intrinsic value
Intrinsic value is a measure of the perceived value of an asset. This is not always the same as the current market price because assets can be over- or undervalued. 

Interbank/Interdealer Market
A market only open to large financial institutions, to trade between them. This market is not restricted to a physical location and it does not have a centralised exchange.

Investment capital
A trader’s investment capital is the financial resources they currently have available for trading. It could be in the form of money or other assets. It can also refer to funds invested in a firm or company for the purpose of furthering its business objectives. 

Investor
An investor is a person who devotes capital to an investment, with the hope of seeing a return. The main goal of any investor is to minimise risk and maximise return.

IPO
IPO stands for initial public offering. This is the first sale of a stock by a company, when it goes public on a stock exchange. This can also be known as floating, flotation, or just ‘going public’.