Forex Glossary - I -

A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-X-Y-Z


IMF: International Monetary Fund was formed in the 1940s and currently has 181 members. Its main goal is to promote international trading and stabilize exchange rates of member countries.

Implied Rates: The interest rate determined by the difference between spot and forward rates.

Inconvertible Currency: Currency that can’t be exchanged for other currencies.

Inflation: Is a sustained increase in the general price of goods and services in an economy.

Initial Margin: A deposit that needs to be made by the client to the clearinghouse to cover a position in the market.

Interbank Rates: Foreign exchange rates that are charged between two big banks for loans.

Interest Rate Risk: Amount of mismatches and maturity gaps among transactions in the foreign exchange books.

Interest Rate Swap: A contractual agreement between two parties to swap interest rate payment from each other.

International Fisher Effect: This theory states that investors will hold assets denominating in depreciating currencies only if the interest rates are high enough to balance any currency losses.

Intra-Day-Limit: The daily limit set on a dealer’s currency position.

ISO codes: International Organization for Standardization is standardized currency codes