CURIOUS ABOUT BOND TRADING?

I am gifted during traffic holds as well as options-but not with bonds. Don’t know anything about them or how to cost them. Is the face worth of the single down payment (any bond) sincerely expensive? I mean- i am means to traffic holds as well as options during $4.00 per trade. This cannot be finished with holds can it? It in all costs about $1,000.00 to buy the tradeable down payment as well as afterwards the same volume to sell it-correct? Thanks

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M D June 23, 2010 at 7:07 am

No

The only way you would pay $1000 commission on a bond sale is if you bought $500,000 of bonds or more.

Bond commission is usually charged as a percentage of the whole deal.

IF you deal exclusively online, your broker should have a commission sheet that deals with corporate bonds, government bonds, foreign and domestic, etc

There are many good sites that tell you about pricing bonds, it is mainly high school math applied to money instruments

muncie birder June 23, 2010 at 7:20 am

Unless the bonds are NYSE traded bonds, the commission is marked into the quoted offering price with most dealers. So you really do not know what the commission is. Bonds are sold in either $1000 face amount increments or in the case of municiple bonds $5000 face amount minimum. But the price is actually quoted as $100.00 face amount. When you sell a bond it is the very same principle. The quoted price includes the broker commission.

There are certain exceptions to this. Government bonds sold at auction is one. On those transactions there may be a commission charged becuase you are buying them directly from the government with your broker acting as an intermediary. With IPOs there is not commission charged either. The seller pays the commission.

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