Investment in convertible bonds can be carried out in the following two ways:

1. The convertible bonds are purchased on the day of issuance.

Investors can buy convertible bonds on the day of issuance, and the steps are as follows: log in to the trading software, enter the purchase code of convertible bonds in the trading column, and make a top purchase. After purchase, you will enter the entrustment page and wait for the lucky draw.

2. Buy directly after listing.

After the convertible bonds are listed, investors can enter their code, click Buy, enter the purchase quantity, and then click Buy.

Convertible bonds are bonds that bondholders convert bonds into common shares of the company at the agreed price at the time of issuance. Convertible bonds are characterized by creditor's rights, equity and convertibility.

The interest rate of this bond is generally lower than that of ordinary companies, and its holder also has the right to sell the bond back to the issuer under certain conditions, and the issuer also has the right to redeem the bond under certain conditions.

Basic income:

When convertible bonds lose their conversion significance, as a low-interest bond, they still have fixed interest income. If the share conversion is realized, investors will get the proceeds from selling ordinary shares or get dividend income.

The biggest advantage:

Convertible bonds have both the attributes of stocks and bonds, and combine the long-term growth potential of stocks with the advantages of security and fixed income of bonds. In addition, convertible bonds have priority over stocks.

Convertible bond conversion formula:

Number of convertible bonds (shares) = number of convertible bonds * 100/ current initial conversion price.

When the company sends shares, issues new shares, issues shares or lowers the conversion price, it can adjust the initial conversion price. If the balance of the convertible bonds is not enough to convert 1 share, the Company will pay in cash through the registration and settlement company at the time of delivery on T+ 1 day.

Investors should pay full attention to the following risks when investing in convertible bonds:

1. Investors of convertible bonds should bear the risk of stock price fluctuation.

Second, the risk of interest loss. When the stock price falls below the conversion price, convertible bond investors are forced to become bond investors. Because the interest rate of convertible bonds is generally lower than that of ordinary bonds of the same grade, it will bring interest losses to investors.

Third, the risk of early redemption. Many convertible bonds stipulate that after a period of issuance, the issuer can redeem the bonds at a certain price. Early redemption limits investors' maximum rate of return. Finally, the risk is forcibly converted.

When the stock market situation is optimistic and the convertible bonds rise with the secondary market price and exceed their original cost price, investors can sell the convertible bonds and directly obtain income;

When the stock market is depressed and the stock prices of convertible bonds and their issuing companies both fall, it is not cost-effective to sell convertible bonds or convert convertible bonds into stocks, investors can choose to obtain fixed interest at maturity in the form of bonds. When the stock market turns from weak to strong, or the performance of the company issuing convertible bonds is optimistic, and it is expected that the company's share price will rise sharply, investors can choose to convert bonds into stocks at the conversion price stipulated by the issuing company.