Kitco Markets Bond CFDs are based on fixed-income debt securities that pay investors a regular coupon in exchange for their investment. There is no interest debited or credited on these Bonds CFDs, just like the underlying Futures markets that they are based off.
Again, this means you only have to worry about the price of the bond and whether you go long or short. 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.
- Bonds pay a regular fixed coupon to the bondholder and can be sold in secondary markets. Governments issue bonds to finance government spending on projects such as public infrastructure.
- Traders generally trade bonds on the basis of future interest rate expectations. If a central bank increases interest rates, bond prices will decline and yields will increase.
- Bond CFDs provided by Kitco Markets are based off highly rated government issued debt securities.
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.