| Implied
Volatility : |
The
Implied Volatility of an option is a calculated value of the options
pricing model. To calculate the implied volatility, an investor
would use the last sale (bid price or asked price) as the theoretical
value of the option and solve the model to determine what volatility
would have been required to calculate that value.
|
| In
the Money (ITM): |
An
option whose strike price is below the current price of the underlying
stock or future (for call options) or above the current price of the
underlying stock or future (for put options). With IBM trading at $110,
both the $100 call options and $120 put options are in the money.
|
| Independent
Introducing Broker: |
A
firm or individual that solicits and accepts commodity futures orders
from customers but does not accept money, securities or property from
the customer. Unlike a Guaranteed Introducing Broker, an Independent
Introducing Broker is subject to minimum capital requirements and can
introduce accounts to any registered Futures Commission Merchant. |
| Initial
Margin : |
The
amount a market participant must deposit into a margin account at the
time an order is placed to buy or sell a contract. |
| Inside
Day: |
A
day with a higher low and lower high than the preceding price bar. |
| Intrinsic
Value : |
The intrinsic value of an option is what its premium would be if the
price of the underlying would remain at its current level until expiration.
For an in-the-money option, it is the difference between it’s
striking price and the price of the underlying.
The intrinsic value of an at-the-money or out-of-the-money option
is zero dollars. |
| Introducing
Broker (IB): |
See
Guaranteed Introducing Broker and Independent Introducing Broker. |
| Inverted
Market : |
See
Backwardation. |