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INDICATIVE QUOTE
A market-maker's price which is not "firm" or "firm quotation."
INITIAL MARGIN REQUIREMENT
The minimum Margin Balance necessary to establish a NEW Open Position. FXDD reserves the right to change the Initial Margin requirement at it's sole discretion. The Initial Margin requirement can be expressed as a percentage (i.e., 2% of US dollar position amount) or can be calculated by the Leverage Ratio. For example, a $100,000 position in USD/JPY would require $2,000 of margin given a 2% Margin Requirement. Expressed as a leverage ratio, if 50:1 leverage ratio is used a $100,000 position would require the same Initial Margin ($100,000 / 50 = $2,000).
INTERBANK MARKET
The interbank market is the over-the-counter market of dealers that make markets in foreign exchange to one another.
INTEREST RATES
In the foreign exchange market, the interest rate differential (IRD) refers to the difference in interest rates between two similar interest-bearing currencies. In the spot foreign exchange market, this pertains to the difference in interest rates in a pair. For example, if the Australian dollar has an interest rate of 4.50% and the Japanese yen has an interest rate of 0.10%, then the interest rate differential between the two is 4.40%. The IRD is one of the most important factors to consider when engaging in trade.
INTERNATIONAL TRADE
International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events.
INTERVENTION
Buy or sell action by a central bank in an attempt to affect the value of its currency. Concerted intervention refers to action by a number of central banks to influence the value of exchange rates.
INTRA DAY POSITION
Open positions run by a customer of FXDD within the day. Usually squared by the close.
INTRODUCING BROKER
A person or legal entity that introduces customers to FXDD often in return for compensation in terms of a fee per transaction. Introducing Brokers are prevented from accepting margined funds from their customers.