IB - See Introducing Broker.

Income Security - A security whose nominal (or current dollar) yield is fixed or determined with certainty at the time of purchase.

Index Arbitrage - The simultaneous purchase (sale) of stock index futures and the sale (purchase) of some or all of the component stocks which make up the particular stock index to profit from sufficiently large intermarket spreads between the futures contract and the index itself.

Initial Deposit - See Initial Margin.

Initial Margin - Customers' funds put up as security for a guarantee of contract fulfillment at the time a futures market position is established. See Original Margin.

In Sight - The amount of a particular commodity that arrives at terminal or central locations in or near producing areas. When a commodity is "in sight," it is inferred that reasonably prompt delivery can he made; the quantity and quality also become known factors, rather than estimates.

Inter commodity Spread - A spread in which the long and short legs are in two different but generally related commodity markets. Also called an intermarket spread. See Spread.

Interdelivery Spread - A spread involving two different months of the same commodity. Also called an intracommodity spread. See Spread.

Interest Rate futures - Futures contracts traded on fixed income securities such as GNMA's, U.S. Treasury issues, or CDs. Currency is excluded from this category, even though interest rates are a factor in currency values.

Intermarket Spread - See Spread and Intercommodity Spread.

International Commodities Clearinghouse (ICCH) - An independent organization that serves as a clearinghouse for most futures markets in London, Bermuda, Singapore, Australia, and New Zealand.

In-The-Money - A term used to describe an option contract that has a positive value if exercised. A call at $400 on gold trading at $410 is in-the-money 10 dollars.

Intracommodity Spread - See Spread and Interdelivery Spread.

Intrinsic Value - A measure of the value of an option or a warrant if immediately exercised. The amount by which the current price for the underlying commodity or futures contract is above the strike price of a call option or below the strike price of a put option for the commodity or futures contract.

Introducing Broker (or lB) - Any person (other than a person registered as an "associated person" of a futures commission merchant) who is engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on an exchange who does not accept any money, securities, or property to margin, guarantee, or secure any trades or contracts that result therefrom.

Inverted Market - A futures market in which the nearer months are selling at prices higher than the more distant months; a market displaying "inverse carrying charges," characteristic of markets with supply shortages. See Backwardation.

Invisible Supply - Uncounted stocks of a commodity in the hands of wholesalers, manufacturers and producers which cannot be identified accurately; stocks outside commercial channels but theoretically available to the market.

ISDA - The International Swap Dealers Association, Inc., a New York-based group of major international swap dealers, which has published the Code of Standard Wording, Assumptions and Provisions for Swaps, or Swaps Code, for U.S. dollar interest rate swaps as well as standard master interest rate and interest and currency swap agreements and definitions for use in connection with the creation and trading of swaps.