Bonds are essentially tradable debt instruments issued by governments or companies to finance their operations. When it comes to ECN forex brokers, however, it is usually high-rated government bonds from developed countries we are talking about. These bonds are considered to be some of the safest assets that exist in the investment universe.
Trading government bonds as CFDs through an ECN forex broker opens up opportunities to get significant leverage on the trade, which can boost the profit potential. However, leverage can also amplify losses, and should therefore be used with caution. It’s also worth noting that the maximum leverage allowed in CFD trading is strictly limited in the EU and several other Western countries, although Australia and many offshore countries still have a relatively lenient policy on this issue.