The Bond market is the largest securities market in the world. Bonds are units of corporate debt issued by corporations and government bodies to be used as tradable assets. A Bond is referred to as a fixed-income instrument that is traditionally paid a fixed interest rate to debtholders.
Traditionally safer investment
Hedge risk in your portfolio
Wide variety of options
Ideal to offset volatility
Diversify your portfolio
A Bond is an OTC (Over-the-Counter) fixed-income debt instrument that technically is a loan from an investor to a company or government agency.
Let’s say a corporation decides to expand its product range and as a result requires capital raising to undertake research and development. The total R&D cost to get the product to market is 10 million dollars. In order to raise the capital it might decide to sell 10,000 Bonds to investors at $1,000 each.
LEARN TO TRADE BONDS CFDs
A Bond CFD is a form of derivative trading. When trading Bonds as a CFD, you are not purchasing the literal Bond, you are taking a position on the price of the underlying instrument in the market. Trading Bond CFDs allows you to take a long position (price rising) or a short position (price falling). Each Bond CFD uses a designated Bond as its reference point. CFD stands for “Contract for Difference” which ultimately means the difference between the opening and closing position of the Bond.
The MT4 and MT5 platforms offered by Zero Markets are the ideal choice for trading Bonds CFDs.
Metatrader 4 (MT4) & Metatrader 5 (MT5)
MT4 & MT5 are the favourite choice for Bonds traders around the globe. Zero Markets’ MT4 & MT5 are packed with extras to ensure you’re equipped with all the tools you need to make better informed trading decisions. Tight Raw Pricing, fast execution and superior charts are the building blocks for our MT4 & MT5 solutions.
3 weeks later, the price of the US10YR is now $110 (bid), an increase of $10 on your entry price. You decide to close your position and take profit, earning you $10 profit x 10 contracts = $100 total profit.
TRADE FROM 0.0 PIPS
|GILT||UK Long Gilt Futures||0.43||0.43||0.43||0.43|
|US10YR||US 10yr T-Note Futures||0.44||0.47||0.44||0.47|
Open a Zero Markets trading account today and join over a million others globally trading 2,000+ markets on an easy-to-use platform. Go long or short with competitive spreads on indices, shares, forex, gold, commodities, cryptocurrencies, bonds and more. Plus, get extended hours on major US shares, AI-powered tools and 24/5 client support. Learn more about trading CFDs with Zero Markets.
Licensed & Trusted
Research & Education
Technical Analysis Tools
24/5 Live Support
Trade On The Go
Same Day Account Opening
Visit our comprehensive FAQ where you can find information about the services we offer and answers to your trading questions. Help Centre