๐ฐTrading
Your Bond Trading Hub
Overview
Welcome to the Trading tab on Secured Finance, your gateway to fixed-income trading. This interface enables you to engage in peer-to-contract lending and trading of zero-coupon (ZC) bonds with simplicity, efficiency, and transparency.
What is Zero-Coupon Bond Trading?
In ZC bond trading, you have the flexibility to buy or sell zero-coupon bonds at any time. When buying a bond, youโre effectively lending assets, while selling a bond equates to borrowing assets. All transactions occur on our Orderbook, which pairs trades directly with counterparties via smart contracts.
How Does Trading Work on Secured Finance?
When you buy a ZC bond, you lend your assets to the smart contract. Your order is matched with another user, and over time, your initial investment accrues interest, reaching face value at the bondโs maturity. Conversely, selling a bond means borrowing assets: you receive funds upfront and repay the bond's face value upon maturity.
Benefits of Zero-Coupon Bond Trading
Our ZC bond trading offers a flexible, efficient way to earn interest or borrow assets. You can adjust your positions as needed, giving you full control over your investments by trading against the Orderbook market.
Need to Unwind a Trade?
If you want to exit a position, you can unwind a trade with ease. For lenders, this means selling your bond, while for borrowers, it involves repaying your loan. The platformโs design ensures a seamless process for finding counterparties, allowing for smooth and efficient trade unwinding.
What Happens When My Loan Matures?
Upon maturity, funds are automatically reinvested into the next 3-month maturity cycle via our Auto-Roll feature. This functionality minimizes reinvestment risks and promotes steady growth by keeping your assets continuously invested. See our Auto-Rolling section for more details.
How Does Secured Finance Protect My Loan?
Secured Finance prioritizes loan security with robust collateral management and smart contract technology. Borrowers are required to pledge collateral, which is managed by the smart contract to reduce counterparty risk. Our smart contracts enforce loan terms automatically, enhancing security and reliability. For more details, see our Collateral and Security & Safety Measures sections.
Ready to begin? Visit our Beginners Guides to learn more about using the Trading tab on Secured Finance and start trading with confidence.
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