How to Trade Bonds?

Bonds are one of the most popular financial assets being traded in the world.

• Question 01

  What is the secondary market for bonds?

  Your Answer

  • A.Where bonds are initially issued

  • B.Where bonds are bought and sold after issuance

  • C.Where bonds are traded internationally

  • D.Where bonds are guaranteed to increase in value

• Question 01

  What is the term used for bonds issued by governments?

  Your Answer

  • A.Corporate bonds

  • B.Treasury bonds

  • C.Municipal bonds

  • D.Agency bonds

• Question 01

  How can investors trade bonds using CFDs?

  Your Answer

  • A.By owning the actual bond

  • B.By buying and selling physical certificates

  • C.By taking short or long positions in the bond futures market

  • D.By investing directly in government bonds

• Question 01

  What is the FAB strategy used for in bond trading?

  Your Answer

  • A.Hedging against interest rate changes

  • B.Maximizing profits

  • C.Minimizing losses

  • D.Profiting from yield movements

• Question 01

  What does the FAB strategy involve?

  Your Answer

  • A.Going long on a 5-year T-note and shorting on long-term bonds

  • B.Selling all bond holdings

  • C.Buying only corporate bonds

  • D.Avoiding government bonds

• Question 01

  Why are government bonds considered among the least risky investments?

  Your Answer

  • A.They have high credit risk

  • B.They have low credit risk

  • C.They have high interest rates

  • D.They have low interest rates