Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.

Bonds

Trade Bonds Using a Robust Platform Combined with First-Class Trading Conditions

What is a Bond?

In simple terms, a bond is an agreement between a borrower and a lender, where a borrower finances a project by issuing a bond. Bonds, also known as treasuries or securities, are generally issued by governments. The issuer of a bond, or the ‘borrower’, sets the interest rate which is then paid to the investor. At the maturity of this bond the investor is then paid back their initial investment.

Unlike stocks, there’s no central exchange to buy and sell bonds. The bond market is an ‘over-the-counter’ market, which is much bigger than the stock market! It’s also important to note that, as a trader, you aren’t directly buying or selling the bond, you’re simply speculating about how the bond will appreciate or depreciate in value over time.

Why TRADE BONDS
with Tickmill?
Our aim is to help our traders succeed by
providing an exceptional trading experience.
  • Spreads from 0.0 pips.
  • Access to German Bonds
  • 0.15s Average execution speed.
  • All trading strategies enabled.
  • Leverage up to 1:100.

BONDS

Instrument Minimum Spread Typical Spread Long Position Short Position
#EURBOBL 18 40 -3.836 -1.314
#EURBUND 18 40 3.524 -8.892
#EURBUXL 18 40 0.491 -5.671
#EURSCHA 18 40 -2.924 -2.226
For a full list of our spreads click here.
HOW-TO
Trade Bonds
Bond price is affected by changing market sentiments and the economic landscape, with the most influential price drivers being interest rates, yield and the bonds rating. However, understanding the relationship between a bond’s price and external factors is somewhat complex.

Let’s look at interest rates as an example:
Due to inflation, the government decides to raise interest rates. When this happens the interest rate on the bond increases, meaning that the yield, or amount paid back to the investor, will fall. In turn this causes the bond’s price to decrease, because it’s worth less to the original investor!

If a trader were speculating that there would be an interest rate hike, they would then sell the bond, expecting that the price will fall. In the above example, the trader would have therefore made a profit!

Learn to Trade Bonds

Tickmill's Bond Trading Hours
We offer our clients access to German bonds and you’re able to trade from:
GMT TIME
START TRADING with Tickmill
It's easy and fast!
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