Introduction To Trading Bonds
A bond is a debt security issued by an entity to borrow money to finance operations or a specific development or project. Government bonds are issued by a government. Some of the most popular bonds in the market are issued by more stable governments, such as the US, UK, Japanese and German governments. Owning government-issued bonds is considered one of the lowest risk investments as a government backs them. Investors receive interest payments for holding a bond and are repaid the debt when the bond reaches maturity. Because of the lower risk profile associated with owning bonds, investors earn a relatively low-interest rate.
Each government has different rules and limitations concerning how they sell bonds. Most investors buy, sell and speculate on bonds in the secondary market. Besides buying and selling bonds in the secondary market, many traders are attracted to trading bonds with CFDs. Some of the most popular bonds traded in the secondary market are the German Bund, US Treasury Notes, Bills & Bonds and UK Gilts.
The Benefits Of Trading Stocks as CFDs
Trading bonds using contracts for difference (CFDs) offers many advantages compared to investing in bonds.
When you invest in bonds, to ensure profitability, you collect interest payments quarterly or semi-annually and wait for the bond to reach maturity and receive full payment from the issuer. CFDs allow you to open short term positions to trade volatility.
Investing in bonds only gives exposure to the upside. Short selling can be a vital tool for bond investors to hedge against the downside. CFDs also allow you to speculate on the price going up, or down.
When you trade bond CFDs with AlphaMarkets, you can open positions with leverage as high as 1:20, which means only 5% margin is required to maintain the position. Investing in bonds requires the entire value of the position is put down.
There can be numerous obstacles faced when buying bonds from issuing governments. Access the bond market from the convenience of one CFD trading account, where you can trade bonds from various countries and regions.
To purchase bonds from brokers dealing in the secondary market, you’ll find yourself faced with minimum order sizes ranging from $10,000 to $100,000 and greater. The minimum order size to trade bond CFDs with AlphaMarkets is …(TBC)...
Buying and selling bonds in the secondary market comes with high transaction and custody costs which make you think twice before making a move. CFDs are designed to be more cost-effective for active traders.
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What We Offer
Trade bonds issued by the most influential governments in the world from anywhere with our intuitive trading platforms from all screens and devices.
From one CFD trading account, you can speculate on the price of leading bonds such as the UK Long Gilt, US 5 YR T-Note, US T-Bond, Euro Bund, and more.
Trade bonds without paying fixed fees per trade, maintenance fees or custody fees. At AlphaMarkets, we charge a variable fee depending on the size of your order. If your trade is small, the fee should be small.
The news cycle regularly features information concerning bond yields; our analysts filter out the noise and distribute helpful insights to all clients of AlphaMarkets.
Trading Accounts
Choose the right trading account to match your investment goals. Whether you’re a day-trader looking to profit from short term price movements or a position trader, looking to benefit from the long-term appreciation or depreciation of precious metals, then AlphaMarkets probably has a suitable account for you.
Here are the four most popular trading accounts for precious metals traders.
AlphaMarkets BRONZE
AlphaMarkets GOLD
AlphaMarkets PREMIUM
AlphaMarkets SILVER
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If you can’t find the right trading account, don’t worry. We’ve got more options waiting for you.
View all AlphaMarkets trading accounts details
How To Open A Trading Account?
FOpen your AlphaMarkets trading account in four simple steps.F
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FWant To Practice First?F
Practice makes perfect. That’s why we give all clients a free lifetime demo trading aFFccount to polish their trading skills.
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Trade Bonds CFDs Online
FAlphaMarkets offers two premium online trading platforms to analyse and trade bonds issued by the world’s most reliable governments. You can expect to find detailed charts showing years of historic price information for all available products when you sign in. The most traded bonds amongst Dalix traders are UK Gilts, Japanese Bonds, US Treasury Notes, Bonds and Bills, German Bund, Euro Bund, and many more.
We offer MetaTrader 4, the world’s most popular and advanced trading platform with endless capabilities, and our very own AlphaMarkets trading platform, which is ideal for beginners looking for a modern trading interface.F
MetaTrader 4
AlphaMarkets Trader
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Trade Bonds Issued By
The Most Stable Governments
Thousands of government and corporate bonds are floating around the investment marketplace, making it hard to know what to trade. At AlphaMarkets, our team of investment analysts have cherry-picked the most noteworthy bonds issued by the most reliable governments in the world. In our trading platform, you can find bonds from the US, UK, Japan and Germany.
We Offer More Than
Bonds
If you want to speculate on the fluctuating price of different bonds throughout their lifecycle, then you’ve come to the right place. However, the bond market only offers a limited number of opportunities. You might be interested to know that you can trade many other CFDs, such as stock market indices almost 24-hours a day.
Our vision is to provide a one-stop destination for traders and investors to access a wide range of products in the financial markets. With one trading account, you can discover hundreds of financial instruments. If you don’t see any good trading opportunities in the bond market, you could easily view the charts of numerous forex pairs, commodities, precious metals and more. If you do find an opportunity, you can go right ahead and open a position. There is no need to open a new account or change any settings.
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Speak to an account manager to find out more.