I | Glossary

Iban

IBAN, or International Bank Account Number, is a standardized system of identifying bank accounts across national borders to facilitate international transactions. It consists of up to 34 alphanumeric characters, including a country code, two check digits, and a basic bank account number.

Iceberg order

An iceberg order is a type of large trading order that is divided into smaller, more manageable chunks to conceal the true size of the order from the market. This technique is used to minimize the impact on the market price and to avoid alerting other traders to the presence of a large order. Only a small portion of the total order is visible in the order book at any given time, with the rest remaining hidden, much like the bulk of an iceberg beneath the surface of the water.

Impermanent Loss

Impermanent Loss refers to the temporary loss of funds experienced by liquidity providers in decentralized finance (DeFi) when the price of deposited assets changes compared to when they were deposited.

Instant Bank Transfer

Instant Bank Transfer is a digital payment method that allows for the immediate transfer of funds between bank accounts. This service is typically facilitated through online banking platforms or mobile banking apps, enabling users to send and receive money quickly and securely.

Instant Payment Notifications (IPN)

Instant Payment Notifications (IPN) is a method used by online payment systems to notify merchants about the status of a transaction in real-time. When a payment is made, an IPN is sent to the merchant's server, providing details such as payment status, transaction ID, and payer information.

Instant Payment Notification URL

The IPN (Instant Payment Notification) URL, also known as a callback URL, is a web address used by online payment systems to send real-time notifications to a merchant's server about the status of a transaction. When a payment is made, the payment processor sends an HTTP POST request to this URL, allowing the merchant's system to automatically update order statuses, manage inventory, or trigger other business processes based on the transaction's outcome. This mechanism ensures seamless communication between the payment gateway and the merchant's backend system.

Insurance fund

Insurance fund is a financial reserve established by insurance companies, organizations, or governments to cover potential future claims or losses. This fund is accumulated through premiums paid by policyholders and is used to ensure that sufficient resources are available to meet the obligations of insurance policies, providing financial protection and stability in the event of unforeseen incidents or disasters.

Integrated application

An integrated application is a software solution that combines multiple functionalities or modules into a single, cohesive system. This type of application is designed to streamline processes, improve efficiency, and enhance user experience by allowing seamless interaction between different components.

Integrated Payments Plugins

Integrated Payments Plugins are software components designed to seamlessly incorporate payment processing capabilities into websites or applications. These plugins enable businesses to accept various forms of payment, such as credit cards, digital wallets, and bank transfers, directly within their digital platforms.

Interchange Fee

An interchange fee is a fee paid between banks for the acceptance of card-based transactions. Typically, it is charged by the bank that issues the card (the issuer) to the bank that processes the payment on behalf of the merchant (the acquirer).

International Payment Methods

International payment methods refer to the various ways individuals and businesses can transfer money across borders. These methods facilitate global trade and commerce by enabling transactions in different currencies and between different financial systems. Common international payment methods include wire transfers, credit and debit card payments, online payment platforms like PayPal, and digital currencies such as Bitcoin. Each method varies in terms of speed, cost, security, and convenience, catering to different needs and preferences for international transactions.

Interoperability

Interoperability refers to the ability of different systems, devices, or applications to work together seamlessly, exchanging and utilizing information effectively without any restrictions. It is crucial in various fields, such as technology, healthcare, and telecommunications, to ensure that diverse systems can communicate and function in harmony, enhancing efficiency and user experience.

In-the-Money / Out-of-the-Money

"In-the-Money" (ITM) and "Out-of-the-Money" (OTM) are terms used in options trading to describe the intrinsic value of an option. An option is "In-the-Money" if exercising it would result in a profit. For a call option, this means the stock price is above the strike price; for a put option, the stock price is below the strike price. Conversely, an option is "Out-of-the-Money" if exercising it would not be profitable. For a call option, this means the stock price is below the strike price; for a put option, the stock price is above the strike price. These terms help traders assess the potential profitability and risk of their options positions.

Intrinsic value

Intrinsic value refers to the inherent worth of an asset, investment, or entity, based on its fundamental characteristics and potential for future cash flows, rather than its current market price.

Investment portfolio

An investment portfolio is a collection of financial assets such as stocks, bonds, mutual funds, and other securities held by an individual or institution. The primary goal of an investment portfolio is to diversify risk while aiming for a desired return on investment. By strategically allocating assets across various investment types and sectors, investors can balance potential gains with risk tolerance, time horizon, and financial objectives. Effective portfolio management involves regular monitoring and rebalancing to adapt to market conditions and personal financial goals.

Invoice

An invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided, their quantities, and agreed-upon prices.

Issuing Bank

An issuing bank, also known as an issuer, is a financial institution that provides credit cards or other payment cards to consumers. It is responsible for approving credit card applications, setting credit limits, and managing the cardholder's account. The issuing bank also plays a crucial role in the payment process by authorizing transactions, ensuring security, and handling billing and customer service for cardholders.

Glossary