How do I trade bonds ?

*JDR*

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Never really paid attention at uni when talking about bonds.

Know generally how to price them etc but am clueless on how to trade them.

I am with Interactive Brokers.
 
thanks goose.. you are right my post is vague...

maybe bonds isn't the way...

I'm looking for a replacement for a cash account...... so want regular coupon.
 
Really depends what sort of bonds you're into. Minimum investment is generally around £100k.For corporate bonds, a decent stockbroker would be able to help - and probably necessary. You'd want to make sure the issue was liquid above all if you're intending not to hold until expiry. Gilts could be an option, but the return is likely to be lower than you'd get on your savings or corporate bonds as the UK Govt is less likely to default. You can buy gilts direct from the UK Debt Management Office - part of the treasury UK Debt Management Office although you'd probably want to do some work on how their priced first.
 
I'm looking for a replacement for a cash account...... so want regular coupon.

You don't need 100k to invest in or trade bonds. Most corporates can be had in 1k units and there are loads of them trading on exchanges. You can trade them through a normal stock broker. Same with gov't debt.
 
thaks all... I've been looking at IB tradeable products....

Now If I get this correct and I am just looking at yield then I should be buying short term bonds or t-bills...... for example....

20081030 @ 1.695 (912795H46)...

Now I've not found any infor on this.... but from what I understand T-bills are short term and are priced with a discount on face value as opposed to bonds which pay actual interest...and may also be priced different to face value.....

Anyone know what price the above mentioned is at ?
 
20081030 @ 1.695 (912795H46)...

Now I've not found any infor on this.... but from what I understand T-bills are short term and are priced with a discount on face value as opposed to bonds which pay actual interest...and may also be priced different to face value.....

Anyone know what price the above mentioned is at ?

You're correct that Bills are discount securities where your interest return comes from the difference between where you purchase the Bill and par (100). Bonds and Notes are coupon securities where your interest is paid periodically (semi-annual in this case).

Doing a quick Excel calculation (TBILLPRICE formulaa), the price of that Bill would be just over 99.85 based on a Monday (9/29) settlement.
 
how to do I trade bonds?

While investors can trade marketable bonds among themselves whenever they want, trading is usually done with bond dealers, more specifically, the bond trading desks of major investment dealers. The dealers occupy centre stage in the vast network of telephone and computer links that connect the interested players.
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