IMMEDIATE OR CANCEL (IOC): This is an order requiring that all or part of the order be executed immediately, most often seen when filling large orders can be difficult. These can include any fraction of the order not executed immediately are automatically cancelled.

IMPLIED VOLATILITY: A theoretical value designed to represent the volatility of the security underlying an option as determined by the price of the option. The factors that affect implied volatility are the exercise price, the rate of return, maturity date and the price of the option. Implied volatility increases when the market is bearish and decreases when the market is bullish. This is because of the common belief that bearish markets are more risky than bullish markets.

INDEX OPTION: This is an option whose underlying security is an index. If exercised, settlement is made by cash payment, since physical delivery is not possible. Investors trading index options are essentially betting on the overall movement of the stock market as represented by a basket of stocks.

INDEX: This is a statistical indicator providing a representation of the value of the securities which constitute it. Indices often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured. 

INITIAL MARGIN REQUIREMENT: The percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his or her own cash or marginable securities. According to Regulation T of the Federal Reserve Board, the initial margin is currently 50%. This level is only a minimum and some brokerages require you to deposit more than 50%.

INITIAL PUBLIC OFFERING (IPO): The Initial Public Offering is the first sale of stock by a company to the public.

INSTITUTIONAL INVESTORS: Entity with large amounts to invest, such as investment companies, mutual funds, brokerages, insurance companies, pension funds, investment banks and endowment funds. Institutional investors are covered by fewer protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves. 

INTEREST RATE RISK: This includes the possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. This risk can be condensed by diversifying the durations of the fixed-income investments that are held at a given time. 

INTEREST RATE: This is a rate which is charged or paid for the use of money. 

INTEREST: The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal; the rate is dependent upon the time value of money, the credit risk of the borrower, and the inflation rate. 

IN-THE-MONEY (ITM): This can be a situation in which an option's strike price is below the current market price of the underlier (for a call option) or above the current market price of the underlier (for a put option). In other words, this is when your stock option is worth money and you can turn around and sell or exercise it for a profit.

INTRINSIC VALUE: This is the actual value of a security, as opposed to its market price or book value. The intrinsic value includes other variables such as brand name, trademarks, and copyrights that are often difficult to calculate and sometimes not accurately reflected in the market price.

INVESTOR: This is an individual who commits money to investment products with the expectation of financial return. The primary concern of an investor is to minimize risk while maximizing return.

IRON BUTTERFLY SPREAD: This is an options strategy that is created with four options at three consecutively higher strike prices. The two options located at the middle strike create a long or short straddle (one call and one put with the same strike price and expiration date) depending on whether the options are being bought or sold.

IRON CONDOR SPREAD: This is an advanced options strategy that involves buying and holding four different options with different strike prices. The iron condor is constructed by holding a long and short position in two different strangle strategies. A strangle is created by buying or selling a call option and a put option with different strike prices, but the same expiration date.

ISSUE: This is stock or bond which has been offered for sale by a corporation or government entity, usually through an underwriter or in a private placement.

ISSUER: This is a company or municipality offering (or having already offered) securities for sale to investors. Examples include corporations, investment trusts, and government entities.

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