Interest-rate 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.

You can trade CFDs on a range of interest rate-linked markets, including short-term interest rate futures, government bond futures, and bond perpetual futures. These instruments often tend to respond to shifting expectations around monetary policy, inflation, and macroeconomic data.

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

For example:

• If traders expect the US Federal Reserve to hike rates, prices on US Treasury futures have historically tended to fall in anticipation.
• If the ECB signals a dovish tone, Euribor futures can often lead to a rise as markets adjust their rate forecasts.

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.

Why trade interest rate markets with Capital.com?

With Capital.com, you can trade CFDs on a wide range of interest rate-linked markets.

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.