What are the bond trading methods?
There are four trading methods of municipal bonds: spot trading, bond repurchase trading, bond futures trading and bond option trading. At present, China's personal bond investment is mainly based on spot bond transactions, supplemented by repurchase transactions.
1, spot trading
Spot trading, also known as cash spot trading, is a trading method in which bond buyers and sellers handle delivery immediately or in a short time after the transaction is completed. The delivery time is usually on the trading day (t) or the next day (T+ 1). Spot trading is the most basic trading method in the bond circulation market.
In the stock exchange market, ordinary investors can participate in spot trading as long as they hold securities accounts in the Shanghai and Shenzhen stock exchanges. As long as the code, price and quantity of bonds to be bought and sold are indicated, investors can entrust securities companies to buy and sell bonds just like buying and selling stocks.
2. Repurchase transaction
Repurchase refers to the transaction mode in which bondholders and bondbuyers make transactions to obtain capital, and bond issuers must repurchase the original bonds from bondbuyers at an agreed price, and pay interest at an agreed interest rate at an agreed time in the future. Different from spot transactions, repurchase transactions involve two transactions between the issuer and the buyer, two transactions between the initial transaction and the repurchase transaction when the repurchase expires, and two corresponding liquidation.
Repurchase transactions can be further divided into pledged buyable transactions and buyout repurchase transactions according to whether the ownership of bonds is transferred. Pledged repurchase refers to the repurchase transaction in which bonds are only used as funds and pledges without ownership transfer, also known as closed repurchase. Buy-out repurchase refers to the repurchase transaction that transfers the ownership of bonds at the end of the transaction and the expiration of the repurchase, also known as public repurchase.
The above are several ways of bond trading, so you can pay attention to them.