Futures Trading Glossary
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Source: National Futures Association; published here with permission. This publication (Glossary of Futures Terms - An Introduction to the Language of the Futures Industry)
is the property of the National Futures Association.
In-The-Money Option
An option that has intrinsic value. A call option is in-the-money if its strike price is below the current
price of the underlying futures contact. A put option is in-the-money if its strike price is above the
current price of the underlying futures contract.
Independent Introducing Broker
A firm or individual that solicits and accepts commodity futures orders from customers but does not aaccept
money, securities or property from the customer. Unlike a Guaranteed Introducing Broker, an Independent
Introducing Broker is subject to minimum capital requirements and can introduce accounts to and registered
Futures Commission Merchant.
Initial Margin
The amount a futures market participant must deposit into a margin account at the time an order is placed
to buy or sell a futures contract.
See also Margin.
Intrinsic Value
The amount by which an option is in-the-money.
Introducing Broker (IB)
See Guaranteed Introducing Broker and Independent Introducing Broker
Inverted Market
See Backwardation
Source: National Futures Association; published here with permission. This publication (Glossary of Futures Terms - An Introduction to the Language of the Futures Industry)
is the property of the National Futures Association.
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