If you’re looking for a multi-asset broker with tight spreads and great execution then you’ll love Global Prime. Our Bond CFDs give you the ability to trade the world’s most liquid, popular and largest government bonds from the US, UK, Europe and Japan as a CFD with low minimums, no commissions and competitive margins.
Our Bond CFDs can be accessed from our MetaTrader 4, TraderEvolution and TradingView platforms. TradingView will also allow you to track all major markets and stocks from across the world.
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The Fixed Income asset class consists of different debt instruments, with the most popular and traded type of Fixed Income security being government bonds. Since government bonds are typically tied to floating interest rates, you are trading future interest rate expectations for that country. This makes government bonds one of the purest ways to speculate on the health of an economy, risk on/off, reserve bank quantitative easing programs, and so on.
Our government bond CFDs are based on the futures markets for those products. This gives you the ability to speculate purely on the price of the bond without actually owning it. This also means there is no interest debited or credited, you only have to worry about the price of the bond and whether you go long or short.
When you trade government bonds, you’re taking a view on the interest rate expectations for that country. Interest rates and bond prices move in an inverse fashion, this means bonds rally when yields drop, and vice versa. As an example, if a central bank increases interest rates, bond prices will decline and yields will increase.
The gross profit on your rate is calculated as follows:
1.00 x 100 x 132.473 = 13,247.30 USD
1.00 x 100 x 132.473 x 1% = 132.473 USD
1.00 x 100 x 133.00 = 13,300 USD
The price of the 10 Year Treasury Bond (UST10Y) is 132.45 bid /132.473 ask. You would like to buy 1 standard lot (100 contract size) at 132.473 ask.
You have 5,000 USD balance and the leverage is 1:100
One day later, the price of UST10Y has risen to 133.00 bid/133.023 ask. Since you are in profit, you would like to close your position by selling 1 standard lot (MT4 1.00) at 133.00 bid.
View our trading conditions across our full range of products to see how trading with Global Prime is your next best move.
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7 USD/lot or commission free