What is the biggest increase of convertible bonds in a day? Trading skills of convertible bonds

Convertible bonds are bonds issued by listed companies that can be converted into company stocks under certain conditions. Convertible bonds can get the expected return of fixed interest like other bonds, but at the same time they can also earn the difference by buying and selling bonds on the exchange. So how much can convertible bonds rise at most a day?

1. What is the biggest increase of convertible bonds in one day?

Although convertible bonds are also traded through stock accounts, there is no price limit for convertible bonds, and the price can change freely with the relationship between supply and demand in the market. However, there are some restrictions on the transaction price of convertible bonds.

1, call auction interval

On the first day of listing: the effective bidding range of convertible bonds in Shenzhen Stock Exchange is 70%- 130% of the issue price, and that in Shanghai Stock Exchange is 70%- 150%.

First day of non-listing: the effective bidding range of convertible bonds of Shenzhen Stock Exchange on the first day of non-listing cannot exceed 90%- 1 10% of the closing price of the previous trading day. The increase or decrease of each transaction in continuous bidding and late bidding is limited to 10% of the transaction price (not one day).

2. Fuse mechanism

In addition to the scope of call auction, the convertible bonds of the Shanghai Stock Exchange also have a fuse mechanism: they rise or fall by more than 20% and are suspended for 30 minutes; If the price rises or falls by more than 30%, it will be suspended to14: 55; No fuse after 14: 55.

Second, convertible bonds trading skills

Although there is no limit to the rise and fall of convertible bonds, general convertible bonds will not rise indefinitely. Generally speaking, the announcement on the issuance of convertible bonds has clearly stated the "compulsory redemption" clause.

Generally, the listed company's positive share price for 15-20 days (generally 130% of the current conversion price) is higher than the threshold of conversion price 130%, which will trigger forced redemption.

The price of forced redemption is usually not very high, so if investors fail to sell bonds or convert them into stocks in time, they may lose some profits due to forced redemption.

The above content about the maximum increase of convertible bonds in one day, I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.