Convertible bond trading, buying and selling are charged a trading commission, in addition to this there is no other charges Shanghai convertible bonds, the default trading commission is two-tenths of one percent, the minimum charge of 1 yuan, that is, the trading commission is less than 1 yuan, also charged 1 yuan Shenzhen convertible bonds, the default trading commission is one-thousandth of one percent, there is no minimum charge.

The trading of convertible bonds is commission-only, free of stamp duty, and the commission is the same as that of stocks; ?

The gains are twofold:

If the bond is held to maturity, it is a debt service payment;

Trading gains: if the underlying stock rises during the holding period, the price of the bond will also rise

There are two choices:

1. Sell the bond for the difference in price (because the bond price will follow the underlying stock up)

2. Convert the bond into a Stocks. Convertible bonds are less risky than stocks, that is, stocks may go down a lot, convertible bonds can wait for principal repayment at the least (it is based on the coupon of $100, not the purchase price), and if the stock rises, it can also make a profit.

Expanded Information:

Convertible bonds? English: convertible bond (or convertible debenture, convertible note). A bond issued by a company that contains conversion features. In the prospectus, the issuer promises to convert the bond into ordinary shares of the company within a certain period of time according to the conversion price. The conversion feature is an obligation of the bonds issued by the company. Convertible bonds have the advantage of fixed income, which is not available with common stock, and the potential for appreciation, which is not available with bonds.

Convertible bonds are bonds that can be converted into shares of a company's common stock at a price agreed upon at the time of issuance. If the bondholder does not want to convert, he or she can continue to hold the bond until the end of the repayment period when the principal and interest are collected, or sell it in the liquid market for cash. If the holder is optimistic about the appreciation potential of the bond-issuing company's stock, he or she may exercise the conversion right after the grace period and convert the bonds into stock at the predetermined conversion price, which the bond-issuing company may not refuse.

The interest rate of the bonds is generally lower than the interest rate of ordinary corporate bonds, and the issuance of convertible bonds by enterprises can reduce the cost of financing. Convertible bond holders also enjoy the right to sell the bonds back to the issuer under certain conditions, and the issuer has the right to force redemption of the bonds under certain conditions.

Convertible bonds are bonds that can be converted by the holder into a certain amount of another security within a certain period of time at a certain percentage or price. Convertible bond is the abbreviation of convertible corporate bond, also referred to as convertible bond, is a kind of special corporate bond that can be converted into common stock at a specific time and under specific conditions. Convertible bonds have the characteristics of both debt and option.