Bonds are loans to entities such as governments or corporations to raise capital, with interest payments and the principal amount repaid at maturity. Bond trading through CFDs is the easiest way to speculate on the underlying instruments without owning the bonds.
Take long or short positions based on the expected price movements of bonds with VT Markets and benefit from instruments such as US 10-year Treasury Bond Futures, UK Long Gilt Futures, Euro-Bund Futures, and more.
Trading bonds through CFDs allows you to leverage your positions, enabling you to amplify your potential gains. VT Markets offers up to 100:1 leverage for bond trading. You can speculate on bond price movements with a smaller capital outlay, maximising your trading opportunities.
We have carefully curated a selection of the best bonds for you to trade, catering to both long-term and short-term trading goals. Find the right bond for your strategy with VT Markets.
CFD trading offers a versatile and cost-effective way to trade bonds. With VT Markets, you can enjoy ultra-low spreads, making your trading more profitable and cost-efficient. Our commission starts from 0 USD per trade.
From
$0
commission per trade
Enjoy up to
100:1
leverage
Our trading platforms will make trading bonds a breeze with our powerful and customisable tools. Enter and exit trades easily, so you can take advantage of market movements no matter where you are. With the VT Markets mobile app, trading on the go is easy and convenient. You have access to more than 1000 trading assets, including our bond CFDs.
Bond CFDs allow traders to speculate on the price movements of bonds without owning the underlying assets. A bond represents a debt instrument issued by governments, corporations or other entities to raise capital. Bond CFDs mirror the performance of these bonds, allowing traders to take positions on their price fluctuations.
When trading bond CFDs, traders enter into an agreement with a broker to exchange the difference in the bond’s price from when the position is opened to when it is closed. If the trader anticipates that the bond’s price will rise, they can take a long (buy) position to profit from the price increase. Alternatively, if the trader expects the bond’s price to fall, they can take a short (sell) position to profit from the price decline.
The trader selects a specific bond CFD they wish to trade and determines whether they want to take a long or short position based on the market’s outlook. They must then deposit a margin, a fraction of the total position value, allowing traders to control larger positions with a smaller amount of capital. This is known as leverage.
As the bond’s price fluctuates, the value of the trader’s position also changes, where they can either earn a profit or incur a loss. The trader can choose to close the position at any time. The profit or loss from the bond CFD trade is then determined by the difference between the opening and closing prices and the position size and leverage used.
Bond CFDs provide an easy way to diversify your portfolio. By including bond CFDs, traders can potentially reduce their overall risk by spreading investments across different markets. Trading bond CFDs also provides traders access to real-time market data, news and analysis. This information helps traders make informed trading decisions, enabling them to react quickly to market events and take advantage of potential trading opportunities.
It’s important to remember that while bond CFDs can deliver high profits and positive results, trading CFDs on bonds carries risks, including market volatility, leverage-related risks and the possibility of losing the invested capital. Traders should have a good understanding of the bond market and have risk management strategies in place before engaging in bond CFD trading.
You can start trading bond CFDs via the VT Markets platform by opening an account and making an initial deposit. While you can trade bond CFDs anytime during the day, it’s best to buy them during the trading hours of their home country. Using a reliable and leading trading platform to execute trades is also important. The MetaTrader 4 platform is one of the most popular choices amongst seasoned traders worldwide, offering high customisation functionality.
Traders must also research and understand the costs of bond CFDs, such as the bid/ask spread and commission fees, and if you plan to hold your CFDs, don’t forget to learn the swap rates. Once you’ve selected your bond and defined your risk and leverage amount, you can begin trading bond CFDs.
VT Markets users also have the option to open a demo account before they start trading to build their confidence and skills. With the VT Markets demo trading account, you can learn more about the market’s movements and test your trading strategies without risking real capital.
VT Markets has carefully selected some of the best bond CFDs for traders, suitable for short and long-term trading goals. Some bonds you can trade as CFDs using VT Markets include US 10-year Treasury Bond Futures, UK Long Gilt Futures, Euro-Bund Futures and more.
As a regulated broker, VT Markets ensures complete transparency throughout all its trading operations. We prioritise the safety of your funds by maintaining a segregated account separate from the company’s own funds. This dedicated account structure is designed to protect your assets and prevent any potential misuse of funds. If you have any questions regarding our safety measures for deposits and withdrawals, contact us today.