IMPLIED VOLATILITY

Refers to central volatility as supplied by market participants at the close of business each day.

INITIAL MARGIN

The Clearing House determines a minimum deposit (initial margin) on all contracts traded on the market. This margin must be paid by the client to the Clearing Member and is then lodged by the Clearing Member with the Clearing House.

IN-THE-MONEY

An option which is profitable to exercise, ie. a call option with a striking price lower (or a Put option with striking price higher) than the current market value of the underlying futures contract.

INTER-COMMODITY RATE

Concessional rate for specified pairs of commodities.

INTER-MONTH RATE

Rate that applies to the futures equivalent of any options and futures position against any options and futures position in different delivery months for the same commodity.

INTEREST RATE COMMODITIES

Includes the 90-Day Bank Bill, 3-Year Treasury Bond and 10-Year Treasury Bond contracts.

INVERTED MARKET

A market in which prices for distant futures are below the prices of the nearer futures. (See backwardation). ITC SFE real-time market information is transmitted in the Interexchange Technical Committee high speed quotation line specification. This is an extremely accurate transmission method which is utilised by the majority of international futures exchanges.