Overall stock trading is not about gaining profits from bond’s exchange rates, but in the amount of regular interests. Issuer through bonds engage to the capital market those investors, whom he would like to invest money in their securities. Then bond Publisher is obliged to pay his regular profits on agreed dates, and in the end to pay to investor his initial investment.
how it works
In their basic form, bonds and other credit instruments, such as notes, bills and commercial paper, are IOUs — basically, receipts for money borrowed from the investor. They bind the issuing organization to pay a fixed amount of interest periodically (usually semiannually) and repay the full face amount on the maturity date, which is set when the bond is issued.
Governments and corporations regularly finance their operations by issuing such credit instruments.
With NelsonFX you have the best conditions on the market.
- Personal trading assistant:
The highly qualified team of NelsonFX trading assistants offers you support 24 hours a day, 5 days a week. Moreover, you have the opportunity to contact the NelsonFX assistant in your native tongue.
- Lower volatility:
The volatility of bonds (especially short and medium dated bonds) is lower than that of equities (stocks). Thus bonds are generally viewed as safer investments than stocks.
- Legal protection:
Bondholders enjoy a measure of legal protection: under the law of most countries, if a company goes bankrupt, its bondholders will often receive some money back (the recovery amount).
- Bonds are often liquid:
It is often fairly easy for an institution to sell a large quantity of bonds without affecting the price much.
- Debt security:
Bonds are a debt security under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and or repay the principal at a later date, which is termed the maturity.
The advantage of bonds trading is the ability to leverage small price movements because of the margins at play, and the option to free up capital to pursue other investment strategies. So one important step is the choice of a bond, which fits your needs.
Our experienced trading assistants will gladly help you choose a bond and advise you as to which type of bond can satisfy your investment needs.
*These data are only illustrative example.
- Diverse Exposure to Markets
- Low Margin Requirement
- High Liquidity/Competitive Spreads
- No commission
|Instruments||Spreads||Leverage||Rollover||Lotsize||Trading hours||Pip Value|
|TBOND-30Y (US30YBond)||0.06 (USD)||1:25'||1:100'||-7,636||-18,545||1000||22:01 - 20:59||0,01|
|TNOTE-10Y (US10YNote)||0.06 (USD)||1:25'||1:100'||-6,182||-15,014||1000||22:01 - 20:59||0,01|
|EURO-BUND-10Y EU||0.06 (GBP)||1:25'||1:100'||-10,493||-10,848||1000||06:00 - 20:00||0,01|
|GILT-LONG UK (Gilt10Y)||0.06 (EUR)||1:25'||1:100'||-7,529||-8,898||1000||07:10 - 17:00||0,01|
|Japan G. Bonds||0.08 (JPY)||1:25'||1:100'||-10,818||-11,560||100000||00:05 - 01:59, 03:35 - 05:59, 06:35 - 14:24||0,01|
*Leverage is estimated and depends on the real-time value of the instrument.
**Once you open and/or close position, you will pay spread, which is the difference between current Bid and Ask price. Due to market fluctuations the spread might vary. NelsonFX.com does not receive commission, incentives, fee reductions or rebates from any clearing firm.
The spreads provided are a reflection of the time-weighted average. Though NelsonFX.com attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.