I

Implied volatility Method of measuring volatility by considering the

premiums currently trading in the market and calculating the figure

based on the level of the option premium.

In-the-money (ITM) call A call whose present currency price is higher

than the strike price.

In-the-money (ITM) put A put whose present currency price is lower than

the strike price.

Industrial Production An economic indicator that consists of the total

output of a nation's plants, utilities, and mines.

Initiation margin A margin paid by the trading party in order to trade

currency futures. A trader's daily loss cannot exceed the size of this

margin.

Interest rate risk Amount of mismatches and maturity gaps among

transactions in the foreign exchange book.

International Fisher effect Theory holding that investors will hold assets

denominated in depreciating currencies only to the extent that

interest rates are sufficiently high to balance the expected currency

losses.

forexSwiss.com Глоссарий и специальные термины

ФОРЕКС. Электронное руководство для успешной торговли на валютном рынке 132

International Monetary Market The major currency futures and

options on currency futures market in the world. It is a division of

the Chicago Mercantile Exchange in Chicago.

Intrinsic value The amount by which an option is in-the-money. In

the case of a call, the intrinsic value equals the difference between

the underlying currency price and the strike price. In the case of the

put, the intrinsic value equals the difference between the strike price

and the present currency price, when beneficial.

Inverse head-and-shoulders A bullish reversal pattern that consists of a

series of three consecutive sell-offs. Among the three consecutive

sell-offs, the shoulders have approximately the same amplitude, and

the head is the lowest. The formation is based on a resistance line

called the neckline. After the neckline is penetrated, the target is

approximately equal in amplitude to the distance between the top of

the head and the neckline.

Irikubi A bearish two-day candlestick combination. It consists of a

modified atekubi bar. All the characteristics are the same, except

that the second day's closing high is marginally higher than the

original day's low.

Island reversal An isolated range or ranges that occur at the tip of a

V-formation.

ISO codes Standardized currency codes developed by the International

Organization for Standardization (ISO).

Implied volatility Method of measuring volatility by considering the

premiums currently trading in the market and calculating the figure

based on the level of the option premium.

In-the-money (ITM) call A call whose present currency price is higher

than the strike price.

In-the-money (ITM) put A put whose present currency price is lower than

the strike price.

Industrial Production An economic indicator that consists of the total

output of a nation's plants, utilities, and mines.

Initiation margin A margin paid by the trading party in order to trade

currency futures. A trader's daily loss cannot exceed the size of this

margin.

Interest rate risk Amount of mismatches and maturity gaps among

transactions in the foreign exchange book.

International Fisher effect Theory holding that investors will hold assets

denominated in depreciating currencies only to the extent that

interest rates are sufficiently high to balance the expected currency

losses.

forexSwiss.com Глоссарий и специальные термины

ФОРЕКС. Электронное руководство для успешной торговли на валютном рынке 132

International Monetary Market The major currency futures and

options on currency futures market in the world. It is a division of

the Chicago Mercantile Exchange in Chicago.

Intrinsic value The amount by which an option is in-the-money. In

the case of a call, the intrinsic value equals the difference between

the underlying currency price and the strike price. In the case of the

put, the intrinsic value equals the difference between the strike price

and the present currency price, when beneficial.

Inverse head-and-shoulders A bullish reversal pattern that consists of a

series of three consecutive sell-offs. Among the three consecutive

sell-offs, the shoulders have approximately the same amplitude, and

the head is the lowest. The formation is based on a resistance line

called the neckline. After the neckline is penetrated, the target is

approximately equal in amplitude to the distance between the top of

the head and the neckline.

Irikubi A bearish two-day candlestick combination. It consists of a

modified atekubi bar. All the characteristics are the same, except

that the second day's closing high is marginally higher than the

original day's low.

Island reversal An isolated range or ranges that occur at the tip of a

V-formation.

ISO codes Standardized currency codes developed by the International

Organization for Standardization (ISO).