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Understanding Bond Trading Conventions by tehvaccine is a document available to read on EtoBox.
What is Understanding Bond Trading Conventions about?
Bond prices in the United States originally traded in eighths due to the Spanish doubloon currency used in early America, which could be cut into eight equal pieces. This fractional pricing convention carried over to American securities markets. Bonds continue to trade in fractions of eighths rather than decimals because it guarantees dealers a larger profit margin. While most bonds have low liquidity and are not suitable for day trading, Treasury bonds issued by the U.S. government have high enough volume
- Author
- tehvaccine
- Language
- EN