Bonds are debt instruments issued by companies and governments as a way to finance their operations. These bonds are then often traded on public exchanges. Globally, government bonds of developed nations are seen as some of the safest investments that exist. When it comes to forex brokers, we are mainly talking about government bonds that are offered in the form of CFDs.
Bonds are popular among traders because they tend to move in a different way than stocks. It is therefore possible to get returns in bonds even when the stock market’s performance is abysmal. As CFDs, bonds can be traded both “long” and “short,” meaning traders may be able to make money from both rising and falling bond prices.