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Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Coupon definition

A coupon in trading and investment refers to the interest payment a bond issuer makes to bondholders. It is a periodic payment made usually on an annual or semi-annual basis, as a return on the principal investment. The coupon rate is fixed at the time of issuance, and it is expressed as a percentage of the bond’s face value. For example, a $1,000 bond with a 5% coupon would pay the bondholder $50 per year in interest payments.

Reinvesting coupon payments

Coupons can be part of the reason why bond investments appeal to investors. As coupons are paid out consistently, investors seeking a regular income stream may fulfil their needs. Coupon payments can also be reinvested, allowing investors to benefit from the power of compounding. However, like all forms of investing, coupon reinvesting carries risk and investors should ensure they have a clear understanding of their investments before making them.

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.