{"id":22401,"date":"2020-05-26T13:32:16","date_gmt":"2020-05-26T12:32:16","guid":{"rendered":"https:\/\/traders-paradise.com\/magazine\/?p=22401"},"modified":"2021-10-12T12:11:55","modified_gmt":"2021-10-12T11:11:55","slug":"trading-bonds-how-to-start-making-money","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/","title":{"rendered":"Trading Bonds &#8211; How to Start Making Money"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#A_bond_is_a_loan_that_the_bondholder_gives_to_the_bond_issuer_Governments_corporations_and_municipalities_issue_bonds_when_they_need_cash\" >A bond is a loan that the bondholder gives to the bond issuer. Governments, corporations, and municipalities issue bonds when they need cash.<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#Trading_Bonds_The_participants_in_trading\" >Trading Bonds: The participants in trading\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#Dealers_and_traders\" >Dealers and traders<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#Trading_bonds_strategies\" >Trading bonds strategies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#The_differences_between_the_trading_bonds_and_investing\" >The differences between the trading bonds and investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#Should_you_trade_stocks_or_bonds\" >Should you trade stocks or bonds?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#What_to_look_out\" >What to look out\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#Why_trade_bonds\" >Why trade bonds?<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#You_might_like_to_take_credit-defense_trade\" >You might like to take credit-defense trade.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#Bottom_line\" >Bottom line<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"A_bond_is_a_loan_that_the_bondholder_gives_to_the_bond_issuer_Governments_corporations_and_municipalities_issue_bonds_when_they_need_cash\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-22402\" src=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-t-1.jpg\" alt=\"Trading Bonds - How to Start Making Money\" width=\"800\" height=\"450\" \/><br \/>\n<strong>A bond is a loan that the bondholder gives to the bond issuer. Governments, corporations, and municipalities issue bonds when they need cash.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Trading bonds may seem unusual and difficult. But it isn&#8217;t. Actually, the whole process can be quite simple. Anyone interested in trading bonds shouldn&#8217;t have a problem getting started. You can find plenty of opportunities in trading bonds and the bond markets. But some things are special for trading bonds and bond markets. If you are not familiar with them, trading bonds might be very confusing. Honestly, it is important to trade bonds so let&#8217;s see how to do that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First of all, bond markets are much bigger than, for example, stock markets. One of the most important differences between bonds and stocks is that there is no exchange for trading bonds; it is done on the \u201cover-the-counter\u201d market but some kinds of bonds can be traded on exchanges. For example, convertible bonds are possible to trade on exchanges. Actually, trading bonds can happen anywhere where the buyers and sellers can make a deal.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trading_Bonds_The_participants_in_trading\"><\/span><b>Trading Bonds: The participants in trading\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are two types of participants in trading bonds: bond dealers and bond traders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Traders can trade bonds among themselves, but trading is customarily done through bond dealers. Well, to be more precise, these places where you can trade bonds are dealers&#8217; bond trading desks. Bond dealers are kind of intersection points. They have all types of connections available. Phones, computers are on their desks. But also, they are connected with some traders whose job is to gather all information about bonds, they are quoting prices for buying or selling bonds. To make the story short, these traders are responsible for creating the market for bonds.\u00a0\u00a0\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Dealers_and_traders\"><\/span>Dealers and traders<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Dealers&#8217; job is to provide liquidity for bond traders and make it easier to buy and sell bonds with a limited concession on the price. But they have some other possibilities to take part in trading bonds. Dealers can also trade bonds between each other. Sometimes they do so through bond brokers, meaning anonymously. Dealers make money from the spread between the bonds buying and selling price. This also the way how they can lose money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bond trading can be very lucrative. That&#8217;s the reason why pension and <\/span><a href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/cusip-number-for-stocks-bonds-mutual-funds\/\"><span style=\"font-weight: 400;\">mutual funds<\/span><\/a><span style=\"font-weight: 400;\">, financial organizations, and also governments are involved in trading bonds. When you have such powerful players in the market, it isn&#8217;t surprising that $1 million worth of bonds is small initial capital. The bond markets don&#8217;t have any size limit, trades may worth over $1 billion but also $100 million. That isn&#8217;t the rule for the institutional markets, there are no size limits for individual traders, also. Their trades are ordinarily below $1 million.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trading_bonds_strategies\"><\/span><b>Trading bonds strategies<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trading bonds can be passive or active. Both approaches are legit and can produce you the gains.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can make money from bonds in two ways. You can invest in them and hold and receive interest payments after the maturity date. It is usually twice per year. That is a passive way of trading bonds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other way to make money from bonds is by trading them. You can sell your bonds at a higher price than you bought them. For instance, you bought bonds at a nominal value of $20.000. After some time, their market value increases by 20% and you can sell them at $24.000. You&#8217;ll earn $4.000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bond laddering is also one of the more active strategies and very convenient to start trading if you hold bonds with different maturity dates. You can use the profit from bonds with shorter maturity dates to buy bonds with longer maturity dates. This is named &#8220;income stream&#8221; and you don&#8217;t need a lot of money to use this strategy. It is pretty much economical and cheap.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bond swapping is another active approach to trading bonds and very attractive for skilled traders. Where is the catch? Let&#8217;s say one of your bonds isn&#8217;t a good player and it is more likely a losing one, it&#8217;s not going to recover. Traders usually are selling these bonds to get a tax write-off for the loss. The money gained from the selling bond they reinvest in high-yielding bonds. That helps them to build a firm portfolio.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_differences_between_the_trading_bonds_and_investing\"><\/span><b>The differences between the trading bonds and investing<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds&#8217; price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investing in bonds means that you are holding bonds for a long time. You decided to hold them whatever is happening and you are taking the risk to lose your money if bonds prices decrease. When investing in bonds the profit will come from interest payments. Further, on the maturity date, you will put down the total value of your position.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Should_you_trade_stocks_or_bonds\"><\/span><b>Should you trade stocks or bonds?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Bonds and stocks are the most traded assets but in different separated markets. When trading <\/span><a href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/how-to-make-money-by-trading-stocks\/\"><span style=\"font-weight: 400;\">stocks<\/span><\/a><span style=\"font-weight: 400;\">, you are actually buying ownership in some companies. When the company or companies are doing well, the value of your shares will grow.<br \/>\n<\/span><span style=\"font-weight: 400;\">When trade bonds, you are actually lending money to the issuer of the bonds for a fixed period of time. For that you&#8217;ll charge interest. Bonds are often seen as safer than stocks. People use them as saving for retirement, for example.<br \/>\n<\/span><span style=\"font-weight: 400;\">So, trading bonds is an investment strategy. You can use them as we mentioned above, but also, bonds are very useful if you want to diversify your portfolio.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_to_look_out\"><\/span><b>What to look out\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Buying bonds can be a difficult path when you aren&#8217;t purchasing them right from the underwriter or you are buying used bonds. What to look out, how to know you&#8217;re making a good deal?<br \/>\n<\/span><span style=\"font-weight: 400;\">Look out for the credit rating. It is important to know if the company can pay its bond. <\/span><span style=\"font-weight: 400;\">Standard and Poor&#8217;s and Fitch use a rating system that ranks bonds, the best quality is marked as AAA and the worst as D. Between these two marks you&#8217;ll find, in range of quality from good to less good, AA, A, BBB, BB, B, CCC, CC, C bonds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, you&#8217;ll need to know the bond duration. That is an indicator of how unstable the bond can be in terms of changes in <\/span><a href=\"https:\/\/traders-paradise.com\/magazine\/2019\/09\/the-low-interest-rates\/\"><span style=\"font-weight: 400;\">interest rates<\/span><\/a><span style=\"font-weight: 400;\">. If the duration is longer, that means a higher fluctuation when interest rates shift. The problem is in the nature of the bonds. If interest rates increase, the price of a bond decreases. <\/span><span style=\"font-weight: 400;\">Also, be careful when buying bonds through the brokerages. They will charge you the fees. Check it before any bond-buying. Use publicly available data on the pricing of bonds, or bonds with equal maturities, interest rates, and credit ratings.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_trade_bonds\"><\/span><b>Why trade bonds?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trading bonds can boost the yield on your <\/span><a href=\"https:\/\/traders-paradise.com\/magazine\/2020\/01\/the-barbell-portfolio-strategy-of-a-balance\/\"><span style=\"font-weight: 400;\">portfolio<\/span><\/a><span style=\"font-weight: 400;\">. The yield represents the total return you&#8217;ll receive if you keep a bond to its maturity, but you&#8217;ll want to maximize it. The point is to sell bonds with lower yield and buying bonds with better. You are selling bonds with low yield and buying another to earn from the spread. For example, you hold a bond that yields 4,75% and you noticed a similar bond but it yields 5,25%. That is 0,50% more. So, you can sell your bond and buy this better yielding one and you&#8217;ll have a spread gain &#8211; yield pickup of 0.50%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Credit-upgrade trade is used when a trader assumes that a particular debt problem will be upgraded soon. When an upgrade happens on a bond issuer, the price of the bond will rise and the yield will decline. A credit-upgrade means that the company is marked as less risky. Traders want to catch this expected price increase and buy the bond before the credit upgrade. For this type of trade you&#8217;ll need some skills for credit analysis.\u00a0<\/span><\/p>\n<h5><span class=\"ez-toc-section\" id=\"You_might_like_to_take_credit-defense_trade\"><\/span><span style=\"font-weight: 400;\">You might like to take credit-defense trade. <\/span><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">It is very popular. When uncertainty in the economy and the markets increase, some sectors are weaker to fulfill their debt obligations. If you hold this kind of bond, just take a more defensive position. Pull your money out of that sector, don&#8217;t hesitate to get out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, you can trade your bonds to adjust a <\/span><a href=\"https:\/\/traders-paradise.com\/magazine\/2019\/08\/what-is-yield-curve\/\"><span style=\"font-weight: 400;\">yield curve<\/span><\/a><span style=\"font-weight: 400;\"> and change the duration of the bond portfolio you are holding. In this way, you&#8217;ll get an increase or decrease in sensitivity to interest rates, whatever you prefer. Keep in mind that the price of the bond is inversely correlated to the interest rate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reason for trade bonds might be the sector-rotation. For example, you want to reallocate your capital to bonds from the sector that is supposed to outperform the industry or some other sector. If you are trading bonds in the same sector, one strategy could be to switch bonds form <\/span><a href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/cyclical-or-non-cyclical-stocks-where-to-invest-during-a-recession\/\"><span style=\"font-weight: 400;\">cyclical to the non-cyclical<\/span><\/a><span style=\"font-weight: 400;\"> sector or vice versa.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Bottom_line\"><\/span><b>Bottom line<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">To trade bonds, you&#8217;ll need an account. Choose your bond, when trading bonds, you can buy or sell assets from all over the world.<br \/>\n<\/span><span style=\"font-weight: 400;\">Now, decide when you would like to open the <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Position_(finance)\"><span style=\"font-weight: 400;\">position<\/span><\/a><span style=\"font-weight: 400;\">. Timing the opening and closing of trades plays the greatest role in how you are successful in the markets.<br \/>\n<\/span><span style=\"font-weight: 400;\">Open your position by using some online trading platform. Determine how much you want to put on the position and do you want to go short or long. Add stops and limits orders.<br \/>\n<\/span><span style=\"font-weight: 400;\">If your trade isn&#8217;t closed automatically by stops or limits, close it yourself to take profits or cut the losses. To calculate your profit or loss, subtract the opening price of your position from the closing price.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simple as that.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A bond is a loan that the bondholder gives to the bond issuer. Governments, corporations, and municipalities issue bonds when they need cash. Trading bonds may seem unusual and difficult. But it isn&#8217;t. Actually, the whole process can be quite simple. Anyone interested in trading bonds shouldn&#8217;t have a problem getting started. You can find [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":22403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1017,1012],"tags":[1981,179,113,264,1983,143,104,1980,1984,1982],"class_list":["post-22401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-how-to-start-trading-beginners","category-traders-secrets","tag-bonds-trading","tag-how-to-make-money","tag-investing","tag-investors","tag-trade-stocks-or-bonds","tag-traders","tag-trading","tag-trading-bonds","tag-trading-bonds-strategies","tag-why-trade-bonds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trading Bonds - How to Start Making Money - Traders-Paradise<\/title>\n<meta name=\"description\" content=\"In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds&#039; price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trading Bonds - How to Start Making Money - Traders-Paradise\" \/>\n<meta property=\"og:description\" content=\"In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds&#039; price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\" \/>\n<meta property=\"og:site_name\" content=\"Traders-Paradise\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/TradersParadisecom\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-26T12:32:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-12T11:11:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1100\" \/>\n\t<meta property=\"og:image:height\" content=\"733\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Traders_Paradis\" \/>\n<meta name=\"twitter:site\" content=\"@Traders_Paradis\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/person\/ce94bb3c5a52307ca7be58f0e7b93ffe\"},\"headline\":\"Trading Bonds &#8211; How to Start Making Money\",\"datePublished\":\"2020-05-26T12:32:16+00:00\",\"dateModified\":\"2021-10-12T11:11:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\"},\"wordCount\":1682,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#organization\"},\"image\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg\",\"keywords\":[\"bonds trading\",\"how to make money\",\"investing\",\"investors\",\"trade stocks or bonds\",\"Traders\",\"trading\",\"trading bonds\",\"trading bonds strategies\",\"why trade bonds\"],\"articleSection\":[\"How to Start Trading - Beginners\",\"Traders' Secrets\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\",\"name\":\"Trading Bonds - How to Start Making Money - Traders-Paradise\",\"isPartOf\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg\",\"datePublished\":\"2020-05-26T12:32:16+00:00\",\"dateModified\":\"2021-10-12T11:11:55+00:00\",\"description\":\"In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds' price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0\",\"breadcrumb\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg\",\"contentUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg\",\"width\":1100,\"height\":733},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/traders-paradise.com\/magazine\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trading Bonds &#8211; How to Start Making Money\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#website\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/\",\"name\":\"Traders-Paradise\",\"description\":\"Talking Algo Trader\",\"publisher\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/traders-paradise.com\/magazine\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#organization\",\"name\":\"Traders-Paradise\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png\",\"contentUrl\":\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png\",\"width\":3816,\"height\":1402,\"caption\":\"Traders-Paradise\"},\"image\":{\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/TradersParadisecom\",\"https:\/\/x.com\/Traders_Paradis\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/person\/ce94bb3c5a52307ca7be58f0e7b93ffe\",\"name\":\"Editor\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/traders-paradise.com\/magazine\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bb0ccf0e7e25a4fa2fdbb8a41db860a35a9a574a1d7bb9f62b566ee95074f611?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bb0ccf0e7e25a4fa2fdbb8a41db860a35a9a574a1d7bb9f62b566ee95074f611?s=96&d=mm&r=g\",\"caption\":\"Editor\"},\"url\":\"https:\/\/traders-paradise.com\/magazine\/author\/gorica\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Trading Bonds - How to Start Making Money - Traders-Paradise","description":"In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds' price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/","og_locale":"en_GB","og_type":"article","og_title":"Trading Bonds - How to Start Making Money - Traders-Paradise","og_description":"In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds' price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0","og_url":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/","og_site_name":"Traders-Paradise","article_publisher":"https:\/\/www.facebook.com\/TradersParadisecom","article_published_time":"2020-05-26T12:32:16+00:00","article_modified_time":"2021-10-12T11:11:55+00:00","og_image":[{"width":1100,"height":733,"url":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg","type":"image\/jpeg"}],"author":"Editor","twitter_card":"summary_large_image","twitter_creator":"@Traders_Paradis","twitter_site":"@Traders_Paradis","twitter_misc":{"Written by":"Editor","Estimated reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#article","isPartOf":{"@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/"},"author":{"name":"Editor","@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/person\/ce94bb3c5a52307ca7be58f0e7b93ffe"},"headline":"Trading Bonds &#8211; How to Start Making Money","datePublished":"2020-05-26T12:32:16+00:00","dateModified":"2021-10-12T11:11:55+00:00","mainEntityOfPage":{"@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/"},"wordCount":1682,"commentCount":0,"publisher":{"@id":"https:\/\/traders-paradise.com\/magazine\/#organization"},"image":{"@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage"},"thumbnailUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg","keywords":["bonds trading","how to make money","investing","investors","trade stocks or bonds","Traders","trading","trading bonds","trading bonds strategies","why trade bonds"],"articleSection":["How to Start Trading - Beginners","Traders' Secrets"],"inLanguage":"en-GB","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/","url":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/","name":"Trading Bonds - How to Start Making Money - Traders-Paradise","isPartOf":{"@id":"https:\/\/traders-paradise.com\/magazine\/#website"},"primaryImageOfPage":{"@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage"},"image":{"@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage"},"thumbnailUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg","datePublished":"2020-05-26T12:32:16+00:00","dateModified":"2021-10-12T11:11:55+00:00","description":"In trading bonds you are actually speculating on the price changes during a short period in time. You are buying bonds only when you believe they will increase in price. And vice versa, you are selling them only when you believe their prices will drop. So, your profit is coming from the bonds' price movements. Trading bonds is also when you use the advantage of leverage. To be honest, that might magnify your profits but also, you may be faced with great losses.\u00a0","breadcrumb":{"@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#primaryimage","url":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg","contentUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2020\/05\/trading-bonds-f-1.jpg","width":1100,"height":733},{"@type":"BreadcrumbList","@id":"https:\/\/traders-paradise.com\/magazine\/2020\/05\/trading-bonds-how-to-start-making-money\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/traders-paradise.com\/magazine\/"},{"@type":"ListItem","position":2,"name":"Trading Bonds &#8211; How to Start Making Money"}]},{"@type":"WebSite","@id":"https:\/\/traders-paradise.com\/magazine\/#website","url":"https:\/\/traders-paradise.com\/magazine\/","name":"Traders-Paradise","description":"Talking Algo Trader","publisher":{"@id":"https:\/\/traders-paradise.com\/magazine\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/traders-paradise.com\/magazine\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/traders-paradise.com\/magazine\/#organization","name":"Traders-Paradise","url":"https:\/\/traders-paradise.com\/magazine\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/","url":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png","contentUrl":"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/07\/cropped-TP-Full-Landscape-transparent.png","width":3816,"height":1402,"caption":"Traders-Paradise"},"image":{"@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/TradersParadisecom","https:\/\/x.com\/Traders_Paradis"]},{"@type":"Person","@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/person\/ce94bb3c5a52307ca7be58f0e7b93ffe","name":"Editor","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/traders-paradise.com\/magazine\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/bb0ccf0e7e25a4fa2fdbb8a41db860a35a9a574a1d7bb9f62b566ee95074f611?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/bb0ccf0e7e25a4fa2fdbb8a41db860a35a9a574a1d7bb9f62b566ee95074f611?s=96&d=mm&r=g","caption":"Editor"},"url":"https:\/\/traders-paradise.com\/magazine\/author\/gorica\/"}]}},"_links":{"self":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/posts\/22401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/comments?post=22401"}],"version-history":[{"count":1,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/posts\/22401\/revisions"}],"predecessor-version":[{"id":22404,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/posts\/22401\/revisions\/22404"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/media\/22403"}],"wp:attachment":[{"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/media?parent=22401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/categories?post=22401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/traders-paradise.com\/magazine\/wp-json\/wp\/v2\/tags?post=22401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}