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
- Uncertainty over key issues keeps markets without clear direction October 19, 2018 10:04 AM
- Featured Trade: Potential impulsive downleg resumes for Nasdaq 100 October 19, 2018 7:40 AM
- Global equities resume selloff on higher US rate fears October 18, 2018 4:01 PM
- US Treasurys relapse bodes ill for global shares October 18, 2018 3:26 PM
- Company results show slow and steady growth October 18, 2018 9:43 AM
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What are bonds?
Bonds often have a fixed rate of interest which is sometimes called a ‘coupon’. They 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.
Bonds have different names in different countries. For instance UK bonds are called Gilts, bonds in the US are Treasuries and German bonds are called Bunds.
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.
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 their expiry date - that is, the date they are 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, except during times of crisis, requiring leverage to profit from them, over the short-term.