What is a bond

1. Definition

A bond is a debt certificate issued to investors by governments, financial institutions, enterprises, and other institutions when they borrow directly from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to agreed conditions.

2. Advantages of investing in bonds

Investing in bonds has the following advantages:

● You can receive fixed coupon payments when holding a bond, which will not be affected by market fluctuations and thus are relatively stable.

● You can get the principal back when the bond matures, which has relatively low risk unless the bond issuer defaults.

3. How to profit from trading bonds?

In addition to receiving fixed coupon payments, you can buy low and sell high bonds and earn from the spreads.