Trading skills of convertible bonds

The face value of convertible bonds is 100 yuan, and the capital preservation price is face value plus interest. However, the actual purchase price may be higher than 100 or lower than 100. If you buy at a price higher than 100, because the stock price falls, you will probably lose money if you sell it before the holding expires.

The purchase price risk within 100 is relatively low. As long as it is held continuously, it is not a big problem to return it. When the subscription price of convertible bonds exceeds 1 10 yuan, it loses its capital preservation function and is no longer suitable for operation.

2. Timing of trading

Convertible bonds have both stock base and debt base, which can be held for a long time or converted into shares halfway according to market conditions. When the stock market is not good, you can continue to hold it as a bondholder, wait for the bond price to rise slowly, and get back the principal and interest after the bond expires, so the possibility of loss is less. When the stock market is good, convertible bonds can be converted into stocks.

Convertible bonds support T+0, that is, they can be sold on the day of purchase. If the bond price fluctuates greatly, you can also choose to sell it at a high point in advance and get back the principal.

3. Early redemption clause

In order to protect the company's interests, convertible bonds are generally equipped with an early redemption clause, that is, when the stock price rises far beyond the agreed conversion price of convertible bonds, the company can force early redemption at the agreed price. Therefore, investors need to grasp the opportunity to improve the stock, so as not to lose the expected income due to early redemption.

The above contents about the trading skills of convertible bonds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.