FX Glossary(I)


If Done

The new order and the order procedure that pull out the settlement order for the position which the order could be established at the same time. Immediately after, the settlement order will be valid. Example, for the "$/\ 130.00 of positive limit-buy / If done, the positive limit/buy of 132.00 yen"

IFO Business Confidence Index

The IFO business confidence index is one of Germany’s 6 largest Economic Research Institute "IFO Institute" where the Germany targets about 7,000 local companies and performed the investigation and tallying of future business confidence. In the index of economic conditions of 1991 pointed in 100, it will be announced in late next month. The contents are divided into items of production, inventory, orders, prices and employment, a high association with mining and industrial production, also the announcement has become faster. Therefore, one of the indicators is that it has been getting a lot of attention among the economic indicators of euro zone, hence the euro area of Germany.


IMF stands for International Monetary Fund. It is an international cooperation organization, which was established for the purpose of achieving stability of the international financial cooperation and foreign exchange rates. As funded by member countries capital, it finances the country where the balance of payments has deteriorated. Currently, Member States are up to 185 countries. The headquarter is located in Washington, DC


Stands for International Monetary Market. International currency markets on the Chicago Mercantile Exchange (CME).

Import Reservation

Refers to the "dollar-buying reservation" in foreign exchange trading. In order to prepare the dollar at the time the Japanese Importing companies import products from US and when purchasing dollar, the Japanese yen should be exchange to dollar (by selling the yen, and buy dollars). Since the day to pay the dollar has been determined in advance by contract, the buying-dollar dated from that date is said to be the import reservation.

Income Gain

It refers to the income from interest and dividends. On the other hand, the gain from the price fluctuations of the investment capital is called the capital gains itself (Foreign exchange gain, etc.). [← → Capital Gain]

Institutional Investor

Refers to the corporation that would manage the assets to be operated from an individual or corporation for custody such as Life insurance companies and banks, trust banks, security companies, pension funds, hedge funds、etc.

Insufficiency of Middle Rate

It is used to balance the supply and demand of foreign currency due to middle rate settlement, when foreign currency is insufficient mainly the Us dollar. Since the price of the insufficient currency will rise, the “middle rate” will be the dollar-buying material.

Interbank Market

It is the inter-bank foreign exchange market. The trading participants in this market are financial institutions, major security companies, etc. The participants will trade the currency to the direct or indirect (Intermediary: Blow king).When you say Foreign exchange market, it does not mean the physical trading place like that of the Tokyo Stock Exchange, rather it commonly refers to the generic term where the transactions of each financial institutions are being carried out using the communication infrastructure, such as telephones and computers. The transaction between banks is called Interbank Market. The trading participants in this market are financial institutions, major security companies, etc. If the participants, the banks and the security companies directly transact currency with each other, there is also a case where they can trade indirectly via the broker. Currently, the direct dealing has becoming the mainstream where the financial institutions are directly trading currency with each other, rather than via broker.

International Balance of Payments

Balance of payments is a record of calculation of the receipts and payments of international trade in one year. Balance of payments can be divided in large current account and the capital account. Current account (trade and services balance, income balance, current transfers account), capital account (investment account).

International Bank for Reconstruction and Development

One of the World Bank Group, for the developing countries in general, it performs quasi-commercial lending. The funds have been raised from the major markets of the world in addition to the contribution from the member-nation. The majority of World Bank bonds, which will be launched in Japan were issued by the IBRD. The rating is AAA / Aaa by the highest rating.

International Development Asociation

One of the World Bank Group, especially for poor developing countries, performs the financing of long-term and interest-free (commission only). Its activities are mainly supported by investments from member countries.

International Finance Coporation

One of the World Bank Group, performing financing and investment for private enterprises of developing countries. The funds have been mainly procurement from major markets of the world. Also supports the development of financial markets and financial institutions.

International Monetary Fund(IMF)

Specialized agency of the United Nation with the aim to stabilize the currency and foreign exchange market. From the 1944 Bretton Woods agreement, it was founded by 29 countries in March 1946 along with the International Bank for Reconstruction and Development. The main business of the IMF is to make loans to countries where the balance of payments has deteriorated by using the investments of the member countries as capital funds. The current Member States as of September 2011 is 188 countries.


It is also known as the equilibrium operation, the performance of buying and selling of the central bank in order to stabilize the market against sudden fluctuations in the exchange rate that does not reflect the economic reality in the foreign exchange market. For example, the Bank of Japan buys yen to stabilize the market, "yen buying intervention". Conversely, the act of selling yen is called "yen-selling intervention". In addition, the intervention performed only in one country is single intervention and conducted in multiple countries, coordinated intervention. There is a commission intervention where the intervention is being asked to other central banks.

Intra-day Trading

To not to carry the position over the next day refers to a transaction to be closed out on the same day. It also referred to as "day trading". On the other hand, the carrying over of the trading transaction overnight until the next day is called overnight trading

Isolated Gain

It expressed as "isolated gain" when only a particular currency rises. On the other hand, when only a particular currency falls is expressed as "Isolated loss".