Our comprehensive glossary explains many of the terms commonly used in the international markets.

If Done Order

An If Done order actually consists of two orders: a primary order that will be executed as soon as market conditions allow it, and a secondary order that will be activated only if the first order is executed.

In-the-Money (ITM)

A call Option is in-the-money when the price of the underlying stock is greater than the call's strike price. Conversely, a put Option is in-the-money when the price of the underlying stock is lower than the put's strike price. At expiration, Options that are .01 ITM are automatically exercised.


In accounting terms, this refers to all revenues received by a company, both as a result of its sales and other sources such as interest, dividends or rent.


A weighted or unweighted average of the prices of a group of shares. There are many types of 'indexes' (indices) for sectors, sub-sectors and entire markets. Indices are useful for determining the general direction of a sector and perhaps comparing individual shares with the group average. Every major exchange has one or more indices. For example, the NASDAQ exchange has the NASDAQ 100 Index (a composite of the100 largest non-financial companies listed on NASDAQ). Some indices are created and managed by private corporations, such as the Dow Jones Industrial Average and S&P 500.

Initial margins

A deposit which both the buyer and seller must lodge with the clearing house as security. In very volatile markets, the initial margin required can change at short notice.

Inside day

A day in which the daily price range is totally within the previous day's daily price range.

Insider trading

The illegal dealing in shares by people who, because of their privileged position, have information, which materially impacts on the value of the shares, before that information has been made public.


Individuals who possess information likely to affect the price of a stock, but which is unavailable to the public.

Institutional Investor

An organisation (as opposed to an individual), that invests funds arising from deposits, premiums etc. Examples are insurance companies, mutual funds and investment trusts.


A tradable symbol with a monetary value. This can be a Forex cross (currency pair), or a stock ticker etc.

Instrument currency

The currency the instrument is traded in.

Intangible assets

Non-physical items such as goodwill trademark patents, etc. In computing a company's net worth the value at which any intangible item is carried in the balance sheet is excluded.


Short-term (often overnight) borrowing and lending between banks, as distinct from a banks' business with their corporate clients or other financial institutions.


Interest is a charge applied to borrowed money, and is generally expressed as a percentage per year.

Interest rate

The price of money. Money behaves in much the same way as a commodity, in the sense that when it is in short supply, it becomes more expensive and vice versa. The interest rate is the cost of borrowing it and the reward for lending money. There are a variety of different interest rates, which apply to different types of money. For example, the prime overdraft rate is the rate at which the banks' most creditworthy clients borrow on overdraft: the banker's acceptance rate, or BA. Rate, is the rate at which banks discount short-term paper over say 90 days and so on. The size of the money supply is a primary determinant of the interest rate, and also the point in the business cycle. A fall in interest rates is normally seen as an indication of a pending upswing in the economy.

Interest rate differential

The yield spread between two otherwise comparable debt instruments denominated in different currencies.

Interim dividend

A dividend paid out by the company when the directors have received the interim (half year) financial results. The final dividend is paid when the final profits are shown in the final accounts.

Interim earnings

Displays the earnings declared for the specified share either during the current or previous financial year. The figures are adjusted for any subsequent splits, consolidations or capitalisation issues that might have taken place.

Intermediate trend

The intermediate trend or secondary trend refers to a trend against the primary trend or major trend.

International Bank Account Number (IBAN)

An IBAN number contains information detailing the country, bank and branch of the beneficiary, as well as the account number itself. It is used to facilitate automatic processing of cross-border payments. An IBAN can be obtained from the beneficiary's bank. An IBAN is mandatory within the EU.

Intrinsic value

The amount by which an Option is in the money. In the case of a call Option, the intrinsic value is the current price for the underlying asset, less the strike price. For a put Option, the intrinsic value is the strike price less the price for the underlying asset. If the difference between the prices is not positive in either case, then the intrinsic value is zero.


Another word for stocks of raw material, work in progress, consumable stores and finished goods. The valuation of inventory is critical to the balance sheet.

Investment Holding Company

A Company which holds other companies as subsidiary or associate companies.

Investment trusts

Companies specialising in investing in shares. Their capital is fixed and shares in investment trusts listed on an exchange are bought and sold in the market like other shares. Also known as 'closed-end' trusts as their capital is fixed.


International Securities Identification Number designed by the International Organisation of Standardisation (ISO) and advocated by G30.

Island reversal

A series of days that is usually formed after a sharp rally or decline, which is seperated from the previous move by an exhaustion gap, and a move in the opposite direction which follows by a breakaway gap

Issued share capital

Amount of share capital actually issued by a company.

Issued Value

Issued value = number of shares issued X par value

IT3(b) Income Tax form

The IT3(b) is a South African Revenue Service (SARS) Income Tax form used for the return of income from investments, property, rights and royalties.