Admiral Markets, recently introduced CFD on US and German treasury bonds, providing traders with new trading instruments and access to new markets.
Admiral Markets, one of the leading online trading providers, recently introduced contracts-for-difference (CFD) on US and German treasury bonds. This move has provided traders with new trading instruments and access to new markets.
The new instruments and margins
#USTNote, as quoted in the MetaTrader 4 platform, is the first of these instruments. It is a CFD with the reference instrument in a quarterly futures on the US 10-Year Treasury Note (exchange ticker ZN). It gives you the opportunity to trade with much higher leverage, while requiring a much smaller margin. Instead of the 50% required with a traditional broker, Admiral Markets requires just a 2% margin. This allows you to get in with one of the most liquid and actively traded futures in the world. You’ll also be getting into the bonds market, which arguably has more influence on the US economy than the stock market.
#Bund represents the performance of the quarterly futures on Germany’s government bonds (Euro-Bund futures, exchange ticker FGBL). You can get trading with #Bund – one of the most popular instruments in Europe – with a margin of just 1% on using Admiral Markets.
Futures based
Since these instruments are futures based, buying does not result in the accrued right to receive the coupon payment.
On the other hand, since they give you the opportunity to go short, you can benefit from falling prices.
Visit Admiral Markets to see their Contract Specifications, for more details about the expiry terms, spreads, and everything else you need to know about these instruments.