5 Reasons Why Investors Trade Bonds

In reality, bonds are a widely traded asset that can strengthen your portfolio’s risk return profile and add diversification without exposing yourself to excessive volatility. Their supposed low reward is balanced by being a low-risk, safe option for investors, and their inverse relationship to interest rates also offers some profitable opportunities for trading bond CFDs. Trading bonds happens many thousands times a day and is an important part of global economic markets. The bond market is far bigger than the stock market and central banks conduct monetary policy in the bond markets. When buyers and sellers are trading their bonds, they dictate the yields of the various types of bonds they are trading.

• The easiest ways to buy bonds are through a broker, an ETF or directly from the U.S. government in increments of $100.
• To establish a Margin Agreement on an account, [...]