Interest rates trading
Why trade interest rates with City Index?
Interest rates news and analysis
Our performance in numbers
*StoneX retail trading live and demo account holders globally since Q4 2020.
Ways to trade interest rates
Mobile trading app
Seize trading opportunities with our most easy-to-use mobile app to date, with simple one-swipe dealing, advanced charting, and seamless execution. Available on Android and iOS.
Complete with one-swipe trading, custom indicators, alerts and drawing tools.
Harness the power of technical analysis and access real-time trade ideas on our most popular markets.
Gain deeper insight into your trading and discover how you could improve your performance.
What are interest rates?
Interest rates trading FAQ
How do you trade interest rates?
To trade interest rates, you need to follow these five steps.
- Open a trading account. Getting a City Index account is free and usually takes minutes
- Add some funds, so you can start trading interest rates immediately
- Choose the interest rate market that you want to trade and decide whether to go long or short on it
- Decide how much you want to risk on your position, and set up your stop loss and take profit orders accordingly
- Execute your order
If the interest rate market moves in your chosen direction, you’ll make a profit. If not, you’ll make a loss. You can also trade interest rates with zero risk using our free demo trading account.
What does it mean to trade interest rates?
Trading interest rates means opening a short or medium-term position that makes money if rates rise (if you’re long) or fall (if you’re short). Interest rate trading is based on the prices of interest rate futures, which reflect where the markets expect rates to head next.
As with any form of trading, you’ll earn a profit if the underlying market moves in your favour, and a loss if it moves against you. Many traders use interest rates as a ‘safe haven’ market to protect their portfolio against volatility.
What interest rate markets can I trade?
With your City Index account, you can trade CFDs or spread bet on three short-term interest rate markets: short sterling, Eurodollar and Euribor. All come with margin of 20% and spreads starting at just 0.02 points.