BONDS TRADING

Trade CFDs on bonds issued by the world’s leading economies with the best trading conditions in the industry offered by HFM. Bonds can provide stability to any diversified portfolio and act as a hedge against market downturns, as they have a higher likelihood of returning the principal amount at maturity.

WHY TRADE CFDs on BONDS WITH HFM

Ultra-fast execution

Low spreads

No commission

Trade on both rising and falling prices

Bonds by the world’s leading economies

Portfolio diversification

Popular Bonds

View spreads on key global markets, including UK and US government bonds.

Bonds Contract Specifications

Swap values in margin currency Trading Hours
Symbol Description Spreads as low as Leverage (up to) Short Long Monday
Open
Friday
Close
Break
EUBUND.F Euro Bund 0.05 1:50 0.0 0.0 3:20:00 22:58:59 -
US10YR.F US 10-year Treasury Note 0.06 1:50 0.0 0.0 1:05:00 23:54:59 -
UKGILT.F UK Gilt 0.05 1:50 0.0 0.0 10:05:00 19:58:59 -
Swap values in margin currency Trading Hours
Symbol Description Spreads as low as Leverage (up to) Short Long Monday
Open
Friday
Close
Break
UKGILT.F UK Gilt 0.05 1:50 0.0 0.0 10:05:00 19:58:59 -
EUBUND.F Euro Bund 0.05 1:50 0.0 0.0 3:20:00 22:58:59 -
US10YR.F US 10-year Treasury Note 0.06 1:50 0.0 0.0 1:05:00 23:54:59 -
Swap values in margin currency Trading Hours
Symbol Description Spreads as low as Leverage (up to) Short Long Monday
Open
Friday
Close
Break
EUBUND.F Euro Bund 0.05 1:50 0.0 0.0 3:20:00 22:58:59 -
US10YR.F US 10-year Treasury Note 0.06 1:50 0.0 0.0 1:05:00 23:54:59 -
UKGILT.F UK Gilt 0.05 1:50 0.0 0.0 10:05:00 19:58:59 -

Important

  1. Swaps values may be adjusted daily based on market conditions and rates provided by our Price Provider applicable to all open positions. Triple swaps are applied every Friday.
  2. Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).
  3. All Pending Orders will be force closed during market breaks. In case any order is left pending, it will be automatically deleted after the daily market closure time.
  4. The execution of new orders for Bond instruments is subject to company's risk management procedures. The opening of market and pending orders might face temporary rejections.

Calculating Bonds Margin Requirements - Example

Account base currency: USD
Position: Open 1 lot SELL EUBUND.F at 159.17
1 Lot size: 100 shares
Margin requirement: 2% of Notional Value
Notional value is: 1 * 100 * 159.17 = 15,917 EUR
Margin required is: 15,917 EUR * 0.02 = 318.34 EUR
318.34 * 1.1720 (EURUSD rate) = 373.09 USD

Contract Expiration Dates

Symbol January February March April May June July August September October November December
UKGILT.F 25/02/2025 27/05/2025 27/08/2024 26/11/2024
EUBUND.F 04/03/2025 04/06/2025 04/09/2025 04/12/2024
US10YR.F 26/02/2025 28/05/2025 27/08/2025 27/11/2024

WHAT IS BONDS TRADING?

Bond trading is the buying and selling of debt securities, which are issued by corporations, governments, or other organizations. When you buy a bond, you're essentially lending money to the issuer in exchange for a fixed interest payment over a specific period of time. The bond issuer promises to repay the principal (the initial investment amount) to the bondholder when the bond reaches maturity.

Bond CFDs enable you to trade on the price movements of bonds, allowing you to potentially profit from both rising and falling bond prices. This can be particularly advantageous in volatile or changing interest rate environments. Like other CFDs, bond CFDs allow you to trade with leverage, meaning you can control a larger position with a smaller amount of capital.

You can choose between the MT4 and MT5 platforms and the HFM App to start trading CFDs on Bonds.

HOW TO START TRADING CFDs ON BONDS

  • 2. Determine your trading strategy
  • 3. Choose your trading platform
  • 4. Find the bonds you want to trade
  • 5. Open and monitor your position

Ready to learn more about online trading?
Visit our online Trading Education Center for more.

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FAQs

Before you start trading bonds, it's essential to understand the basics of bonds, such as how they work, the different types of bonds, and the risks involved. Then, open an HFM Live or Demo trading account, choose the bonds you want to trade and open your position.

The price of bonds can be affected by several factors, including:

  1. Interest rates: Interest rates have a significant impact on bond prices. When interest rates rise, the price of bonds decreases, and when interest rates fall, the price of bonds increases. This is because as interest rates rise, newer bonds with higher yields become available, making existing bonds with lower yields less attractive to investors.
  2. Credit risk: Credit risk is the risk that the issuer of the bond may default on its payments. Bonds with a higher credit risk, such as high-yield or junk bonds, typically have higher yields to compensate for the increased risk. If the perceived credit risk of a bond increases, its price may decrease, and vice versa.
  3. Inflation: Inflation can also impact bond prices. If the inflation rate is higher than the bond's yield, the purchasing power of the interest payments and principal repayment decreases, making the bond less attractive to investors. As a result, the price of the bond may decrease.
  4. Supply and demand: Bond prices can also be affected by supply and demand factors. If there is high demand for a particular bond, its price may increase. Conversely, if there is low demand, the price may decrease.
  5. Economic conditions: The overall state of the economy can also impact bond prices. For example, during periods of economic uncertainty, investors may flock to safer investments, such as government bonds, driving up their prices. Conversely, during periods of economic growth, investors may favor riskier investments, such as corporate bonds, causing their prices to increase.
  6. Political events: Political events such as elections, geopolitical tensions, and changes in government policies can also affect bond prices, particularly for government bonds. Political instability or uncertainty can lead to higher perceived risk, causing investors to demand higher yields, and lower bond prices.

Understanding the factors that affect bond prices can help investors make informed decisions and manage their bond portfolios more effectively.

There are several types of bond trading, including:

  1. Government bond trading: Government bonds are issued by national governments and are considered low-risk investments. Government bond trading involves buying and selling these bonds on the secondary market.
  2. Corporate bond trading: Corporate bonds are issued by companies to raise capital, and they typically offer higher yields than government bonds to compensate for the increased risk. Corporate bond trading involves buying and selling these bonds on the secondary market.
  3. Municipal bond trading: Municipal bonds are issued by state and local governments to fund public projects such as schools, highways, and hospitals. Municipal bond trading involves buying and selling these bonds on the secondary market.
  4. High-yield bond trading: High-yield or junk bonds are issued by companies with lower credit ratings, and they offer higher yields than investment-grade bonds to compensate for the increased risk. High-yield bond trading involves buying and selling these bonds on the secondary market.
  5. Bond futures trading: Bond futures are financial contracts that allow investors to buy or sell a specific bond at a future date at a predetermined price. Bond futures trading involves buying and selling these contracts on futures exchanges.
  6. Bond options trading: Bond options are financial contracts that give investors the right, but not the obligation, to buy or sell a bond at a specific price before a specific date. Bond options trading involves buying and selling these contracts on options exchanges.
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