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Bond CFDs

Get exposure to the world’s largest and most liquid market through IC Market’s highly competitive Forex CFD trading, with spreads starting from 0.0 pips.

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IC Markets Bond CFDs are based off fixed income debt securities that pay investors a regular coupon in exchange for their investment. We offer the bonds products as a CFD with flexible lot sizing, so you can speculate on the price of the Bond by going long or short.

There is no interest debited or credited on these Bonds CFDs, just like the underlying Futures markets that they’re based off. Again, this means you only have to worry about the price of the bond and whether you go long or short.
Bond CFDs provided by IC Markets are based off highly rated government issued debt securities, including governments of the United States, Japan and Europe. Bonds offer traders the opportunity to speculate on interest rates and risk on/off sentiment to help diversify their portfolios or reduce risk and build defensive positions during periods of economic weakness or uncertainty.

Bond CFDs

Facts

  • 9 bonds available to trade
  • No commissions
  • Up to 1:5 leverage
  • Deep Liquidity
  • MetaTrader 4 and 5
  • Trade 24/5
DETAILS

How does Bonds trading work?

Bonds are part of the fixed income asset class. Bonds pay a regular fixed coupon to the bondholder and can be sold in secondary markets. Governments issue bonds to finance government spending on projects such as public infrastructure.
Traders generally trade bonds on the basis of future interest rate expectations.
If a central bank increases interest rates, bond prices will decline and yields will increase.

The gross loss on your trade is calculated as follows:

Opening Price
($120.25 x 10 contracts) x $200 = USD $240,500
Closing Price
($122.18 x 10 contracts) x 200 = USD $244,360
Gross Loss on Trade
$240,500 – $244,360 = USD $-3,860

Opening the Position

You hold the view that the US Federal Reserve will increase Interest Rates and 5-Year Treasury yields will increase as a result. You sell 10 contracts of March 2017 5-Year US Treasury Note at 120.25.

Closing the Position

Your view is wrong and March 2017 5-Year T-note prices rise. Note: For Bonds with a contract size of 200, it means every 0.01 move in the Bond CFD is worth US$2.

The gross profit on your trade is calculated as follows:

Opening Price
($120.25 x 10 contracts) x $200 = USD $240,500
Closing Price
($118.32 x 10 contracts) x $200 = USD $236,640
Gross Profit on Trade
$240,500 – $236,640 = USD $3,860

Opening the Position

You hold the view that the US Federal Reserve will increase Interest Rates and 5-Year Treasury yields will increase as a result. You sell 10 contracts of March 2017 5-Year US Treasury Note at 120.25.

Closing the Position

Your view is correct and March 2017 5-Year T-note prices decline. Note: For Bonds with a contract size of 200, it means every 0.01 move in the Bond CFD is worth US$2.

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IC Markets (EU) Ltd is a limited company registered in Cyprus under company number HE 356877, and is authorized and regulated by the Cyprus Securities and Exchange Commission with License No. 362/18. The head office address is at 86 Franklinou Roosvelt, 4th floor, Office 401, 3011 Omonoia, Limassol, Cyprus. IC Markets is a trading name of IC Markets (EU) Ltd. Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.12% of retail investor accounts lose money when trading CFDs with IC Markets (EU) Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. There is a possibility to lose all your initial capital. For further information please consider our Risk Disclosure Notice.
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