Shorting bonds means that you are opening a position that will earn a profit expect if the price of either government or corporate bonds fall. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any interest in the underlying asset. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Please consider the Margin Trading Product Disclosure Statement (PDS), Risk Disclosure Notice and Target Market Determination before entering into any CFD transaction with us.

Shorting is a form of trading, and it is made possible through financial derivatives such as CFDs. These products enable you to speculate on bond prices without taking direct ownership of the underlying market. As a result, you can use them to take a position on bonds increasing or decreasing in value. There are three main ways to short bonds with CFDs: by shorting bond futures, by shorting bond exchange traded funds (ETFs) and through going long on inverse bond ETFs. Go short on bond futures

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Inverse bond ETFs and mutual funds are another way to diversify a short bond position and benefit from professional portfolio management. CFD Accounts provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Shorting bonds means that you are opening a position that will earn a profit if the price of either government or corporate bonds falls. Derivatives contracts on bonds, such as futures and options, provide one way to short the bond market, or to hedge an existing long position from a downturn.

Bond ETFs are exchange traded funds that invest solely in bonds. Often, an ETF will contain more than one type of bond to accurately mirror the overall price momentum of the wider bond market. You’d go short on bond ETFs if you thought that the price of bonds was going to fall – and you can use CFDs to open a position. Buy inverse bonds ETFs Bond ETFs are exchange traded funds that invest solely in bonds. Often, an ETF will contain more than one type of bond to accurately mirror the overall price momentum of the wider bond market. You’d go short on bond ETFs if you thought that the price of bonds was going to fall – and you can use spread bets or CFDs to open a position. Buy inverse bonds ETFsShorting bonds is made possible through financial derivatives such as spread bets and CFDs. These enable you to speculate on the value of a bond without having to take direct ownership of it – meaning that you can go long and speculate on the price rising, or short and speculate on the price falling. There are three main ways to short bonds with spread bets and CFDs: by shorting bond futures, by shorting bond exchange traded funds (ETFs) and through going long on inverse bond ETFs. Go short on bond futures Inverse ETFs are designed to be negatively correlated to the underlying assets which they represent – meaning they will decrease with any price increases in the bond market. As a result, if you went long on an inverse bond ETF with spread bets and CFDs, you would profit if the bond that the ETF was negatively correlated to fell in value.