GCI Bonds are structured around fixed income debt securities that provide investors with a consistent coupon payment in return for their investment. Our bond products are available as CFDs with customizable lot sizes, allowing you to engage in price speculation by taking either a long or short position.
There are no interest charges or interest payments involved in these Bonds, similar to the underlying Futures markets they are derived from. This implies that your main concern would be the bond's price and whether you choose to go long or short.
GCI offers Bonds that are backed by government-issued debt securities with high ratings, such as those from the United States, Japan, and Europe. Bonds provide traders with the chance to speculate on interest rates and assess risk sentiment to diversify their portfolios or establish defensive positions during times of economic uncertainty or weakness.
Facts
Bonds
- German and European Bonds
- No commissions
- Leverage up to 1:200
- Deep liquidity
- Trade 24 hours a day, Sunday to Friday (EST)
WHAT ARE BONDS
Bonds belong to the fixed income asset class, providing bondholders with a consistent fixed coupon payment and the ability to be traded in secondary markets.
Governments utilize bonds as a means to fund various projects, including public infrastructure development.
Traders typically engage in bond trading by considering their predictions for future interest rates.
In the event that a central bank decides to raise interest rates, bond prices will decrease while yields will rise.
The Bonds Market: Trading Hours
Bonds trading hours can vary depending on the exchange and the financial instrument being traded. However, there are some common trading hours for major indices:
- Stock Market Indices: Follow the trading hours of the underlying stock exchanges, typically from 9:30 AM to 4:00 PM Eastern Time (ET) on regular trading days in the United States.
- Futures Indices: Have extended trading hours starting on Sunday evening and continuing until Friday afternoon with brief breaks for maintenance, varying depending on the futures exchange.
- Options on Indices: Trading hours follow the hours of the options exchange where they are listed, often coinciding with the trading hours of the underlying stock market indices.
- Exchange-Traded Funds (ETFs): Trade throughout the day on stock exchanges, mirroring regular stock market hours.
Checkout the image below to see how the forex market sessions works out.
Note: The time shown in the image is EST TIME
You’ve probably noticed that there are overlaps between the sessions. For example, at 03:00 (EST) both the Tokyo and London sessions are open. This is what ensures that the indices market provides traders with 24-hour access to trade from Sunday Evening to Friday Evening (the market closes over the weekend).
Bonds Trading Example
1. Opening the Position
The price of the U.S. 30 Year T-Bond is 2140.50/2141.00 and you decide to buy 3 standard lots (the equivalent of €300,000) at 21142.50.
2. Closing the Position
One week later U.S. 30 Year T-Bond has risen to 2150.50/2151.25 and so you decide to take the profit by selling back 3 standard lots at 2150.00.
3. The gross profit on your trade is calculated as follows
Opening Price
€300,000 x 1.07992 = USD $323,976
Closing Price
€300,000 x 1.05345 = USD $316,035
Gross Profit on Trade
$323,976 - $316,035 = $7,941
Important:
- - Swap values may be adjusted daily based on market conditions and rates provided by our Price Provider(s).
- This is applicable to all open positions.
- Triple swaps are applied every Wednesday. - Server Times: Eastern Standard Time - Sunday 17:00 to Friday 16:00.
Example - Calculating Bonds Margin Requirements:
| Account Leverage: | 1:400 |
| Account base currency: | USD |
| Account base currency: | Open 5 lots to BUY S&P 500 at 5290.75 |
| 1 Lot size: | 60,000 units |
| Notional value: | 5 x 60,000 x 5290.75 = $537,760 |
| Margin required: | $537,760 / 400 = $1,344.40 |