Short-term Interest Rates & Bonds

We offer a comprehensive range of Short-term Interest Rate and Government Bond products, all of which are offered with low spreads and with low minimum sizes.

Overview

ProductLast Trading
Day and Time
Settlement
Info
Quotation
Cycle
Min Stake
Long / Short
Base Margin
Requirement
Indicative
Spread
per Unit
UK
3-Month Short Sterling Future Third Wednesday of the Contract Month (1030h) Official underlying EDSP (Exchange Delivery Settlement Price) Quarterly 2 0.50% 1 0.01
Long Gilt Future Third last business day of the previous month (1730h) Daily Settlement of the Underlying Exchange Contract on our Last Trading Day Quarterly 2 2.00% 2 0.01
United States
US 30Yr Bond Future (T-Bond) Third last business day of the previous month (1930h) Daily Settlement of the Underlying Exchange Contract on our Last Trading Day Quarterly 2 1% 2 0.03125
Germany
Bund Future Two business days prior to the tenth calendar day (or next business day) of the contract month (1100h) Official underlying Exchange Contract settlement Quarterly 2 1% 2 0.01
Bobl Future Two business days prior to the tenth calendar day (or next business day) of the contract month (1100h) Official underlying Exchange Contract settlement Quarterly 2 0.50% 2 0.01
Schatz Future Two business days prior to the tenth calendar day (or next business day) of the contract month (1100h) Official underlying Exchange Contract settlement Quarterly 2 0.50% 1 0.01
Europe - Other
3-Month Euribor Future Two business days prior to the third Wednesday of the contract month (0930h) Official underlying EDSP (Exchange Delivery Settlement Price) Quarterly 2 0.50% 1 0.01
Euroswiss Future Two business days prior to the third Wednesday of the contract month (0930h) Official underlying EDSP (Exchange Delivery Settlement Price) Quarterly 2 0.50% 2 0.01

Please note, as a general (but not exact) rule, the last dealing time is approximately 30 minutes before that of the underlying product on the relevant exchange.

Trading Example

It is August 2011, you believe that UK interest rates will rise over the next year.

Our Short Sterling Future September 2012 is currently 98.995/99.015

Our price is calculated as 100 minus the implied interest rate and so if you believe interest rates will rise over the coming year you would sell the quote at 98.995; you decide to risk £30 per point.

It is now March 2012 and the Bank of England has raised UK interest rates. Our price is now 98.495/98.515.

You decide to take your profit and buy back your position at 98.515 to close the position. One point = 0.01 so you make 48 points (98.995 - 98.515 x 100) x £30 (your stake) = £1,440 profit.