ETX Capital provides access to a variety of interest rate and bonds.
Here is the full list of interest rates and bonds that you can trade CFDs on:
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What are interest rates and bonds?
Interest rates and bonds are some of your options when it comes to CFD trading.
Bonds provide a way in which to speculate on long-term interest rates, while trading the interest rates themselves is a method to use if you want to take advantage of movements in the short term.
All about interest rate and bonds trading
The market for trading in short-term interest rates is highly liquid and very popular among investors. It enables traders to speculate on the direction of a particular country's interest rates during a three-month period.
Interest rates will largely be affected by a nation's economic situation, as well as the fiscal policy of both the government and central bank.
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.
Here is an example of a bond CFD trade:
You are convinced that the Euro Bobl Future is going to increase.
You are quoted 124.77 – 124.80 and decide to ‘buy’ at the higher figure, trading £1 per tic of movement.
In order to cover this trade, you will need to meet the minimum margin rate of one per cent, which is worked out as follows:
£1 per tic x 124.80 x 1 per cent = £124.8
By the end of the trading day, the Euro Bobl Future is up and is now being quoted at 125.77 – 125.80. You decide to close your position by ‘selling’ at the lower figure.
Your profit will be calculated like this: 125.77 – 124.80 = 97 tics x £1 = £97
If you believe the market will continue to rise, you can leave the trade open overnight.
Had the Euro Bobl Future market fallen, you would have stood to lose £1 for every tic it moved lower.
1. Trading hours
These are the usual hours of business but may vary where daylight saving applies or where there is a market holiday. All times are expressed as London time.
Where reference to the market spread is used this is a combination of the underlying futures spread and the ETX Capital spread shown for each market.
3. Max Stake Size
Please note, ETX Capital may modify the maximum stake size available for a market in some circumstances, for example, during fast-moving or low liquidity markets.
Futures positions can be rolled over before the expiry of the contract.
ETX Capital will close the open position at the current bid/offer price for that contract and open the new position at the mid price of our current quote for the next contract month.
Daily futures markets cannot be rolled.