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Glossary: I

These are common terms used in the financial services industry

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Illiquid market: A market with relatively less aggregate volume in the order book. In an illiquid market, a small amount of business often moves prices by a disproportionate amount, and bid and offer prices can be far apart.
Illiquidity: The difficulty of changing your assets to cash because of a lack of demand for the asset you're trying to sell. As a market maker, we provide liquidity by constantly quoting a bid and offer spread . Also see Liquidity.
Index: An index, such as the FTSE 100 or S&P 500, gauges the prosperity or value of a section of the stock market. It is calculated from the prices of selected stocks, usually using a weighted average. It is not possible to invest directly in an index; instead investors trade in funds or other products that track the movement of an index.
Industrial production: A monthly economic indicator that measures changes in output for the UK’s industrial sector, including manufacturing, mining and utilities.
Inflation: An increase in the general price of goods and services.
Inflation rate: A measure of inflation that occurs in a given period (a year or calendar quarter for example). The inflation rate shows us how quickly the general price of goods and services is rising.
Initial Public Offering (IPO): The process by which a company is floated on the stock market for the first time. Offering shares to the investment public is a way of raising capital for further expansion. Also known as New issue.
Instant execution: An order that is executed at the price displayed on the screen. If the price isn’t available a requote can be offered as a new two-way price, at which you can resubmit the order or choose to cancel it.
Interbank rates: FX rates quoted to each other by international banks.
Interest: Cash adjustments made to reflect the economic effect of owing or receiving the notional amount of equity controlled by a spread bet or CFD position.
Intraday trading: Trading where positions are opened and then closed out within the same trading day.

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Glossary: I

Illiquid market

Illiquidity

Index

Industrial production

Inflation

Inflation rate

Initial Public Offering (IPO)

Instant execution

Interbank rates

Interest

Intraday trading