Range of Markets

Financial Spread Betting Markets Explained

We have collated a detailed description of all our financial spread betting markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.

US 5 Year Note (Decimal), Dec

Bonds - US5YearNoteDecimal
BondFixedInterest
4 *
(Shares only)
0.01
26/11/2024
2300-2200
£0.5
0.01
None
NTR: Position (GBP) % ***
0 - 469
.30
469 - 939
2.50
939 - 1,878
5.00
1,878 +
15.00
Limited Risk NTR: Position (GBP) % ***
0 - 235
3.33
235 - 469
5.00
469 + 0
15.00
Spread Premium: Stake (GBP) Multiplier
0 - 186
1
186 - 371
1.5
371 - 928
4
928 +
20
Mar, Jun, Sep, Dec
CBOT official settlement on last day of trading +/- spread

*Any spread width shown in brackets is the spread which will be applied outside of the market’s normal trading hours.

**Funding applied on daily basis to ‘Daily’ and ‘Daily Futures’ markets only.

***When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.


Market Description

The US 5-Year Treasury Note is a government bond issued by the US Department of the Treasury. It belongs to the category of medium-term bonds, with a remaining term to maturity ranging from 4.5 years to 5.5 years from the first day of the delivery month. When participating in financial spread betting using platforms like Spreadex, traders can engage in speculation on the price movements of the 5-Year Treasury Note futures.
Familiarity with the inverse relationship between bond prices and yields is vital in navigating this market. As bond prices rise, yields tend to fall, and vice versa. When initiating a spread bet, if your outlook indicates a potential decrease in interest rates, you would execute a 'buy' trade on the 5-Year Treasury Note future. Conversely, if you anticipate an increase in interest rates, a 'sell' trade on the 5-Year Treasury Note future would be more appropriate. It's essential to grasp that these trades are linked to long-term interest rates, rather than short-term bank base rates. While government bonds such as the US 5-Year Treasury Note might not be as widely recognized in the financial spread betting sphere, they can garner significant attention, especially during periods characterized by economic instability and fluctuations in interest rates.


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