Share market news
Share, Stock, or Equities trading has a long history as one of the world's most popular forms of investment.
- Company Share trading takes place in global exchanges
- Each major Stock exchange has its own sets of indexes representing the biggest companies
- Share market trading can involve individual Stocks or Indexes
Bond Market Analysis and Insights
- FTSE slides on Asia, Wall Street cues April 18, 2019 12:42 PM
- Featured Trade: Minor pull-back in progress for Nikkei 225 April 18, 2019 4:03 AM
- FTSE still struggles at 7475: Gold drops April 17, 2019 5:35 PM
- FTSE pauses in step with Chinese shares April 17, 2019 1:49 PM
- Priced-in Chinese growth signals stock market pause April 17, 2019 1:02 PM
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What are bonds?
Bonds often have a fixed rate of interest which is sometimes called a ‘coupon’. Bonds also come with a fixed investment term. For instance, governments frequently choose 1, 5 or 10-year bonds when they need to raise a specific amount of money in a relatively short period of time. Similarly, companies will go to the bond market if they need to raise finance for a specific project, or if they need to access extra finances during a shorter period of time. The same characteristics apply for both company and government bonds.
Bonds have different names in different countries. For instance UK bonds are called Gilts. In the US bonds are known as Treasuries and German bonds are called Bunds.
How to trade bonds
Bonds come with more information than the majority of financial assets. So, if you trade a bond you need to know when it was issued, by whom and its expiry date - that is the date it is due for redemption.The prices of bonds are never quoted alone, they always come together with the interest, the so-called yield. The yield and the bond are always moving in opposite directions. So, if a bond raises, a yield tends to fall.
While bonds are initially sold at auctions into the bond market, bond trading goes on all the time. Traders focus on the yield rather than the price, as this is the best measure of the value of a bond. Bond prices typically move incrementally and require leverage to profit from them over the short-term - unless trading during times of crisis.