What Are The Techniques For Trading Bonds Futures?

Discover how to optimize your investment strategy by learning about different techniques for trading bond futures.

• Question 01

  How can investors potentially increase returns when trading bond futures?

  Your Answer

  • A.By forecasting central bank interest rates

  • B.By avoiding leverage

  • C.By ignoring market indicators

  • D.By holding onto positions long-term

• Question 01

  What data do investors closely monitor to predict central bank policy and interest rates?

  Your Answer

  • A.Stock market performance

  • B.Housing market trends

  • C.Consumer Price Index and employment numbers

  • D.Exchange rate fluctuations

• Question 01

  What is one way investors can use bond futures contracts to hedge against inflation?

  Your Answer

  • A.Going long on government bonds

  • B.Short selling government bonds

  • C.Focus on central bank policy

  • D.Using technical analysis

• Question 01

  What happens to the dividends and coupon payments of stocks and bonds when inflation is high?

  Your Answer

  • A.They increase in real terms

  • B.They have no effect

  • C.They lose value in real terms

  • D.They become more valuable

• Question 01

  What role does central bank policy play in bond trading?

  Your Answer

  • A.It has no impact

  • B.It directly determines bond prices

  • C.It influences interest rates, which affect bond prices

  • D.It determines stock market performance

• Question 01

  How do bonds typically move in relation to interest rates?

  Your Answer

  • A.They move in the same direction

  • B.They have no relationship

  • C.They move inversely

  • D.They move randomly