Trading bonds with CFDs and spread betting works just like trading any other market – except that instead of trading on the prices of stocks, forex pairs or indices, you’re trading on the prices of government bonds.
When you buy or sell a bond CFD, you’re agreeing to exchange the difference in the bond’s price from when you opened your position to when you close it. When you spread bet on a bond, you’re betting on whether its price is headed next.
With either, you can open long or short positions to capitalise on any market movement.