Interest-rate and interest-rate futures trading

What is interest-rate trading?

Interest-rate trading involves speculating on instruments linked to future changes in central bank rates, such as the US Federal Funds Rate, the Bank of England Base Rate or the ECB deposit facility rate.

Interest-rate-linked markets can move in response to central bank decisions, inflation data, employment figures and broader macroeconomic sentiment.

Rather than trading rates directly, you can trade CFDs on interest-rate spot markets or interest-rate futures.

• Interest-rate spot CFDs track live market pricing linked to short-term rate expectations. You can also trade selected interest-rate markets with knock-out options.
• Interest-rate futures CFDs track futures contracts such as 3-month SONIA or Euribor, reflecting market expectations for interest rates up to a set expiry date. Knock-out options are not available on interest-rate futures.

Both formats allow you to speculate on interest-rate movements without owning the underlying instrument.

Why trade interest rates?

Interest rates play a key role in the global economy, influencing everything from borrowing costs to asset valuations. When central banks raise or lower rates, it can affect forex, shares, commodities, and especially bond markets.

Trading interest rate instruments lets you act on expectations around these rate moves – whether you anticipate tightening, easing or simply volatility around key announcements.

With CFD trading, you can go long or short on these movements, without owning the underlying asset. You also have the flexibility to adjust your exposure with leverage – but remember, leverage increases risk as well as potential reward. Knock-outs offer a different approach: trade spot markets with built-in risk limits and predefined costs, set upfront, while still accessing full market exposure.

Why trade interest rate markets with Capital.com?

Whether you're trading around central bank meetings, reacting to inflation surprises, or looking to hedge rate exposure, our platform gives you the tools to do it.

• Access markets like 3-month SONIA and Euribor
• Real-time pricing and news, all in-platform – so you can stay ahead of major data releases
• Advanced charting and risk management tools, including price alerts and stop-losses*

Stay connected to the markets with our intuitive platform and responsive support – and trade key interest rate instruments, with an informed perspective.

*Stop-losses are not guaranteed. Guaranteed stops incur a fee when triggered.