CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is the barbell strategy?

Barbell strategy

This strategy is formed when a trader invests in short and long duration bonds, but chooses not to invest in intermediate duration bonds. When interest rates are rising, this strategy is particularly helpful because when short term maturities are rolled over they possess a higher rate of interest.

Where have you heard about the barbell strategy?

The infamous trader Nassim Nicholas Taleb made a huge success of himself in 2007 and 2008 with his unusual trading methods, and one of his most preferred methods was the barbell strategy.

What you need to know about the barbell strategy.

Taleb explained the barbell strategy as being as hyperconservative and hyperaggressive as you can be instead of being mildly aggressive or conservative. The benefit of the barbell strategy is that it allows for a speedy turnover of a large portion of the assets in the portfolio at one time. There are other types of barbell strategies – one of these suggests putting 90% of your assets in a safe instrument (for example a treasury bill) and to have the remaining 10% free to make speculative and diversified trades that have a huge payoff potential.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading