TRADING GLOSSARY
Yield curve
A yield curve plots bond yields against maturities for debt of comparable credit quality, commonly government bonds in one currency. Its shape reflects interest-rate expectations and risk premiums; an inverted curve has shorter-term yields above longer-term yields.
EXAMPLE
In a hypothetical government bond market, the two-year yield is 4.5% and the ten-year yield is 4%. The curve is inverted between those maturities.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure