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Glossary: I

These are common terms used in the financial services industry

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.


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.


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

The likely opening price of a security based on the current order book, if the market were to open now.

Industrial production

A monthly economic indicator that measures changes in output for the UK’s industrial sector, including manufacturing, mining and utilities.


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.

Interbank rates

Rate of interest which banks charge each other on a short-term basis.


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

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

Trading where positions are opened and then closed out within the same trading day.
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