Lux Investing
Can you literally invest money in interest rates? Is that why interest rates move up and down all the time?
I know you can invest in interest rate futures contracts, such as protecting your bond investments against ups and downs in interest rate movements, meaning you have the right and obligation to purchase or sell a bond at a specific price to somebody at a certain date. But why are there trackers for interest rate movements that literally change every second? Is that because people invest in interest rates? If so, how do you do that?
Public Comments
- When you trade bonds, you are effectively trading interest rates. This is because the value of a bond depends on the current interest rate.
