Financial Markets For The Rest Of Us
An Easy Guide To Money, Bonds, Futures, Stocks, Options, And Mutual Funds
When you trade bonds through your broker, you need to place an order. Your broker would require some specific information from you before your order can be accepted. Depending on your broker you may have to provide various specs for your order, but the following items are a good representation of what you would need to provide:Type Of Trade - This is either buy or sell.
Quantity - You need to specify how many bonds you want to trade. Depending on the bond and your broker's rules, there maybe a minimum requirement for the number of bonds in your order. Also in some cases there are discounts for quantity orders.
CUSIP Number - Obviously you would need to specify what bond you are trading. You do that by giving the CUSIP number of the bond. In most cases you can give your broker the name of the bond and they would handle it for you. If you trade online, most likely you would be able to do a lookup for the CUSIP number of the bond you want to trade.
Price - here you generally have several options. They are:
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