How does one make a profit selling bonds by day trading?
So how does it work? Why should you make any money by holding a bond for even a few seconds and then trading it? What is the process…im just confused how you own a bond, and why anyone would buy it from you through day trading and how/why you are making (or losing) money?
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Its virtually impossible to day trade bonds, its not a very liquid market, and the volume for individual issues is very very low. You just don’t day trade bonds.
Bond markets are much more complex and less liquid than stock markets. There isn’t much “day trading” in bonds.
Bonds are not routinely a day trading product for the general public.
Unless you’re in the industry, and have a large capital based devoted to a fix income inventory you shouldn’t even think about trading bonds let alone day trading.
At times you can day trade corporate bonds, but you need high volume but most corporate lack the volume.
You can trade corporates for arbitrage situations but again in need a large commitment of capital
Municipal/government traders don’t normally day trade, they’re more of position trader than day traders. It does take a large capital base to trade these fixed income securities.
All traders trade to make money so they hold bonds to either make a trading profit, profit from an interest play or an arbitrage play off.
My daughter has been a fixed income for almost ten years, she has been very successful but she has the luxury of working with a very large capital base.