Bonds Trading Explained

The easiest way to explain bonds is to think of them as loans. The bond issuer borrows money and promises to return all the loaned sums when the bond hits its maturity date. As compensation, the bond issuer pays a fixed interest to the creditor at predetermined intervals. If the company goes bankrupt, creditors have a right to be first in line to receive all of the amounts loaned.

How To Trade

In order to start trading, all you have to do is to create an account at Fannexx, deposit funds, sign in to the application – and go for it.

Your first step would be to select the bonds that meet your needs. Do you want to go risk-free by buying the bonds issued by the US State or do you want to try your luck with high-yield bonds? In any case, our highly qualified trading assistants will help you select the best type of bonds according to your preferences.

Highly Reliable

Bonds are much more reliable – in the worst case scenario, bondholders get their investment repaid in full before any shareholders get anything.

Protected by Law

In most countries the right of bondholders to receive their full face value back in case the company goes bankrupt is protected by law.

High Liquidity

Institutions can issue large-scale, low-cost asset trades without triggering a noticeable price change, which may be more difficult for equities.

Debt Securities

This ensures a regular payment of interest and repayment of principal no matter how good or bad the company’s performance is.

Bonds Specifications