Illiquid market
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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
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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
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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.
Indicative Open price
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The likely opening price of a security based on the current order book, if the market were to open now.
Industrial production
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A monthly economic indicator that measures changes in output for the UK’s industrial sector, including manufacturing, mining and utilities.
Inflation
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An increase in the general price of goods and services.
Inflation rate
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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)
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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
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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
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FX rates quoted to each other by international banks.
Interbank rates
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Rate of interest which banks charge each other on a short-term basis.
Interest
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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.
Interest Rate Security
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Security that pays a fixed or floating rate of return. The issuer usually promises to pay a specified rate of interest per annum over the life of the security and to repay the principal at maturity.
Intraday trading
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Trading where positions are opened and then closed out within the same trading day.
