What is Bond CFD Trading?
A bond CFD is a form of financial derivative trading. When you trade a bond, you are taking a position on the price of the underlying instrument and not purchasing the instrument itself. This means that if you feel the bond you are trading will go up in value, you would take a long position and if you feel the value of the bond would fall, you would take a short position.
(BCT) Bond CFDs are based off fixed income debt securities that pay investors a regular coupon in exchange for their investment. We offer the bonds products as a CFD with flexible lot sizing, so you can speculate on the price of the Bond by going long or short.
There is no interest debited or credited on these Bonds CFDs, just like the underlying Futures markets that they’re based off. Again, this means you only have to worry about the price of the bond and whether you go long or short.
Bond CFDs provided by (BCT) are based off highly rated government issued debt securities, including governments of the United States, Japan and Europe. Bonds offer traders the opportunity to speculate on interest rates and risk on/off sentiment, diversify a portfolio or reduce risk and build defensive positions during periods of economic weakness or uncertainty.