Dictionary
- Index Investing
- Index investing aims to earn a rate of return that is identical to the return a benchmark index earns. By constructing a portfolio that is identical to the index, an index fund manager matches its rate of return. The portfolio manager only needs to change the composition of the portfolio when the index changes. Index investing has lower fees than those investing approaches that rely on frequent buying and selling of securities.
- Indirect Quotation
- States the number of units of foreign currency per unit of local or domestic currency. For example, GBP/USD.
- Inflation
- An economic condition whereby prices for consumer goods rise, eroding purchasing power.
- Initial Balance
- The first or first two half-hour trading periods in the CBOT Market Profile during which prices tend to converge; the initial auction of the trading day.
- Initial Margin
- The required initial deposit of collateral to enter into a position as a guarantee on future performance.