Bonds, and in particular government bonds from the world’s most developed countries, are popular assets among both independent traders and institutional investors. Traditionally, bonds have often been used to lower the overall risk in an investment portfolio. To this day, government bonds from rich countries are considered some of the safest investments that exist.
Although government bonds are not traded as much by retail traders as forex and stocks, some Australian ASIC-regulated brokers and others still offer them as contracts-for-difference (CFDs). This makes these bonds readily accessible even for traders with just a small amount of capital, and also makes it easy to profit from falling bond prices by shorting the corresponding CFDs.