Bond trading

Bond trading involves buying and selling debt securities issued by entities like governments or corporations to raise capital. When you purchase a bond, you're essentially lending money to the issuer in exchange for regular interest payments and the return of your principal at maturity. Bond prices fluctuate based on interest rates, credit risk, and market conditions. Traders buy bonds to earn income or capitalize on price changes, often through financial markets like exchanges or over-the-counter networks. It's a key part of the financial system, helping issuers fund projects and providing investors with income and diversification opportunities.