Glossary - I

This section provides an explanation for some of the jargon used to describe structured retail products. If you would like us to add additional words then please let us know by clicking here.


Index of the top 35 shares by market cap listed on the Spanish Stock Exchange.

Implied Volatility

The implied volatility of a share, index or any other asset price is the name given to the expected volatility that this share or index is anticipated as having over some future period (see Historic Volatility).

This term derives from the pricing of financial options as it is the number used by option traders to calculate the price of any option when all the other factors involved are known.


This is the term used to describe any option which has a strike price that is far below (for a call option) or above (for a put option) the current level of the underlying.

So for example a call option on the FTSE100 index with a strike price of 3500 would be called in-the-money if the current level of the FTSE100 was 4500.

Income product

This is the name given to any type of structured product that provides a periodic payment of income. Often the rate of income is higher than the general rate of interest available of fixed rate Deposits and there is therefore a risk that the initial capital invested may not be returned in full (see high income product and Reverse Convertible).

Income Type

The income type category indicates whether the income is fixed or whether it is variable throughout the investment period. Mixed income refers to products with a combination of both fixed and variable income types.


Structured bond (in Norwegian)


Certificate (in Norwegian)


Increase in the general price level of goods and services.

Initial Charges

The one-off charges levied when investment is made in the product. See the product description, for details on whether additional initial charges will apply (Continuous products).

Initial index level

With most structured products, the performance of the investment is linked to the movement of an underlying index or share. In order to measure this performance the level of the underlying is recorded at the start of the investment term. This recording is called the initial index level.

There are a wide variety of methods for calculating this level. It may simply be the level of the index at the close of business on one specific day or in other cases it could be the average level calculated over the first month or more.

Initial measurement period

The initial measurement period is the period at the start of the investment term, during which the initial index level is recorded. This could be just one day or several weeks or even months.

Initial Strike Date

The date when the first fixing is taken for calculating the initial level of the underlying.

Insurance Company

A financial institution whose main activity is providing insurance.

Interest Rate

Underlying is composed of one or more interest rates or bond prices/yields

Intra-day fixing

The return from some structured products is dependant on the level of the underlying measured at any time during the day during a specified period, usually near the end of the investment term.

An intra-day fixing is simply the level of the underlying sampled during the business day, as opposed to, for example, at the close.

An example of the use of intra-day fixings is when the final index level for a product is calculated as the lowest level of the underlying at any time during say the last six weeks of the investment term.

Intrinsic value

This is a term used when describing the premium of an option. The intrinsic value of an option is that element of the option’s premium that represents the value that the option would have were it to be exercised immediately.

So, for example, let us assume that HSBC shares were currently trading at a level of 750p per share. A call option on HSBC with a strike price of 700p per share would have an intrinsic value of 50p per share.

The value of an option i.e. its premium, is always at least equal to its intrinsic value.

Investičné životné poistenie

Life insurance in Slovakia

Investiční certifikát

Investment Certificate in the Czech Republic

Investiční Životní Pojištění

Life insurance in the Czech Republic

Investment Bank

A financial institution that raises capital, trades in securities and advises on mergers and acquisitions.

Investment Trust

UK corporate structure designed for investments. Typically shares in the Trust are listed on the London Stock Exchange.


Individuellt pensionssparande (IPS) is an individual pension savings scheme available in Sweden.

ISA (Individual Saving Account)

An Individual Savings Account (ISA) is a UK savings product that allows individuals to earn a tax-free return. The amount invested in an ISA is limited to a fixed amount in each tax year. In addition only certain qualifying investments are able to be held within an ISA and each has specific limits too.

The ISA product replaced the PEP and TESSA products previously available in the UK.

ISA - Cash

Cash type Individual Savings Account. A UK tax free deposit product.

ISA - Tessa Only

A cash type Individual Savings Account available only for investment of maturity TESSA money.


ISDA stands for the International Swaps Dealers Association. ISDA is a trade body that represents participants in the wholesale over-the-counter (OTC) derivatives market. ISDA has been primarily involved in standardising the documentation used for OTC derivative products and the ISDA master agreement, and its associated documentation, has become the industry standard.


International Securities Identification Numbers. The ISIN code is a 12-character alpha-numerical code that does not contain information characterising financial instruments but allows for uniform identification when trading or settling a security.