Interest is the fee that a borrower has to pay for temporarily borrowing financial instruments or which a lender receives for lending their savings. The interest is usually determined by supply and demand.

Interest rate risk

Describes the risk that the buyer of a bond is taking if the interest rate rises. In this case, the price of the bond will fall and if sold before maturity there will be a loss. The price of a fixed-income security adjusts to the current interest rate by means of price movements.

International security identification number

The international security identification number or ISIN is a twelve digit combination of numbers and letters. The ISIN was intended to replace the German WKN from April 22,2003. However, the German WKN was not abolished, meaning that both identification numbers are now used in parallel.

In the money

For a call option, when the current price of the underlying is above the strike price; for a put option when the current price is below the strike.

Intrinsic value

A warrant’s intrinsic value is the sum of money which can be realised if the warrant is exercised. It is equal to the difference between the current price of the underlying and the strike price of the warrant. The intrinsic value can never be negative. If the price of the underlying rises, the intrinsic value of a call warrant also rises. If the price of the underlying
falls, the intrinsic value of a put warrant rises. The intrinsic value expresses the real value of the warrant. Experts describe the intrinsic value with the expressions “in the money”, “at the money” and “out of the money”.

Investment certificate

Investment certificates are bearer bonds which derive the price development of the corresponding underlying asset, e. g. shares, indices, interest rates, currencies or commodities. With the exception of issuer risk, these products are normally no riskier
than investing directly in the respective underlying. They may have a limited or unlimited duration, do not offer regular income and have a fixed redemption amount.

Implied volatility

Implied volatility reflects market participants’ expectations of the future volatility of a security.


An issue refers to the issue of new securities such as shares, bonds, certificates or leveraged products or also the issue of money by a central bank.

Issue date

The issue date is the date on which a financial instrument is issued.

Issue price

The issue price is the price at which a financial instrument is offered for the first time.


The issuer is the institution issuing the financial instrument.

Issuer risk

Issuer risk describes the danger that the issuer of a financial product will not be able to meet the financial obligation they have entered into. With bonds and certificates, this can occur when there is a deferment of payment or (partial) default on a coupon payment or redemption at the end of the term. With shares, the issuer risk is that a company may become


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