| IB |
Introducing Broker. |
| Implied Volatility |
A measurement of the volatility of the underlying instrument’s price based upon market traded option premiums, as opposed to the calculation of volatility from historical prices of the underlying instrument. |
| In the Money |
An option term. An option is in the money when the price of the underlying instrument is above the strike price of a call or below the strike price of a put. |
| In-Well Transfer |
A form of book transfer used for propane and other petroleum products that are stored underground. |
| Independent |
As used in petroleum, a non-integrated company. A petroleum company active in just one or two facets of the petroleum industry, such as exploration and production, refining and marketing; or in the natural gas industry, transportation and marketing. |
| Initial Margin |
Funds posted as security for a guarantee of contract fulfillment at the time a futures market position is established. Also referred to as a good faith deposit. |
| Integrated |
The degree to which one company participates in all segments of the petroleum industry. |
| Intermediate Crude |
Crude oil in the mid range of API gravity (specific gravity) for crude. West Texas Intermediate (WTI) is the par grade for the NYMEX Crude Oil contract. |
| Interruptible Service |
Utility service which expects and permits interruption on short notice, usually at a pre-determined temperature. |
| Intrinsic Value |
The amount by which an option is “in the money.” |
| Inverted Market |
A backwardated market. The nearby months are at higher prices than the back months. |
