Fixed Income Trading

Fixed income trading focuses on how traders express views on yields, curve shape, spreads, liquidity, and maturity-specific risk. It is different from simply owning bonds for income: the key question is how rate exposure, hedge ratios, carry, roll-down, funding, and execution affect realized P&L.

Use this section when a term changes a trade decision: entry, exit, position size, hedge design, margin use, liquidity, settlement timing, or post-trade review. If the term only provides bond-market background, use the broader investing and bonds sections instead.

Yield Curve Arbitrage covers fixed-income relative-value trades built around mispricing between maturity points on the same curve. Roll-Down Return explains the related carry-and-aging effect that can matter before a curve trade is treated as attractive.

What To Check

Before relying on a fixed-income trading term, identify:

• the instrument: cash bond, futures, swap, ETF, option, or structured trade
• the curve or spread source, timestamp, benchmark, and maturity point
• the duration, convexity, carry, roll-down, funding, and liquidity assumptions
• the hedge ratio, order type, margin treatment, and unwind plan
• whether the evidence comes from executable quotes, risk reports, or commentary

Step back to Trading for broader execution topics, or use the bonds and market-structure sections when the issue is valuation, credit risk, settlement infrastructure, or long-horizon portfolio analysis.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.