What are bonds?

Trading bonds is one of your options when it comes to CFD trading. Bonds provide a way in which to speculate on long-term interest rates.

All about bonds trading

Bonds, although tied to interest rates, are slightly different. There are two main types of bonds - government and private. The former are issued by national governments as a means of borrowing money, while the latter perform the same function but are issued by private companies.

CFD trading on bonds usually takes place on government-issued contracts, enabling traders to speculate on the long-term performance of a country's interest rates.

Economic forecasts, statistics relating to inflation, unemployment or gross domestic product growth and any other factor that affects the financial standing of a nation will all have an impact on bond prices.