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Calculate the net yield of BTP
With the BTP investment simulator you can discover in real time how much you can earn by purchasing BTPs today and bringing them to maturity

Liquidity risk of BTPs

The risk that a security cannot be sold at a fair price with low transaction costs and in a short time.

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BTP training

Liquidity risk of BTPs
Liquidity risk refers to the possibility that an investor will not be able to sell a security, such as a BTP (Buono del Tesoro Poliennale), at a fair price at a desired time. Here is a more in-depth look at this type of risk:

Liquidity Risk in BTPs
  1. Secondary Market: BTPs are listed and traded on secondary markets, which means they can be sold before maturity. However, liquidity can vary depending on the security and market conditions.
  2. Liquidity Factors:
    • Trading Volume: Newer BTPs or those with greater interest from investors tend to be more liquid. Older or less popular BTPs may have fewer buyers, making it harder to sell.
    • Market Conditions: In times of economic turbulence or instability, liquidity may decrease, and market prices may become more volatile.
  3. Sell Price: If the market is illiquid, you may have to sell at a lower price than the face value or purchase price, resulting in a loss.
  4. Maturity: BTPs with longer maturities may present greater liquidity risk, as investors may prefer short-term securities in times of uncertainty.
Risk Mitigation
  • Diversification: Maintaining a diversified portfolio can help reduce liquidity risk, as some securities may be more liquid than others.
  • Selection of Securities: Investing in newer BTPs and those with greater trading volume can improve liquidity.
  • Market Monitoring: Being informed about market conditions and changes in demand for BTPs can help you make more informed decisions.
Conclusion
Although the liquidity risk in BTPs is generally considered lower than other asset classes, it is still important to be aware of this risk, especially if you expect to have to sell the securities before maturity.

Information on BTPs

Choose a topic from the list below and learn more about it
Selling BTPs at maturity
Capital gains
Reinvestment risk of BTPs
Credit risk of BTPs
Buying BTPs
The profit from a BTP
Secondary Market
Choosing between BTPs and STOCKS
Inflation and BTPs
Dividends
Types of BTPs
The yield of a BTP
BTPs and risks
Buying a BTP below par
The price of a BTP
The maturity of a BTP
The coupons of BTPs
MOT Market
Interest rate risk in BTPs
Stock Market Calendar and Trading Hours
Macroeconomic risks
BTPs, BOTs, CTZs and CCTs
Inflation risk of BTPs
Taxation on BTPs
Selling BTPs before maturity
Liquidity risk of BTPs
Capital gains
What is a bond
The periodicity of BTPs
Capital losses
Is it worth investing in BTPs?
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Calculate the net yields of fixed-rate BTPs with the online investment simulator

Find out how much investing in BTP can earn. The simulator will immediately calculate the net yield by processing the purchase price, maturity of the security, coupon interest, purchase day, investment amount, reduced taxation of 12.5%

How to calculate a BTP

Enter how much to invest in BTPs and the simulator will immediately calculate the net yield by processing the purchase price, maturity of the security, interest on the coupons, day of purchase, amount of the investment, reduced taxation of 12.5%

How to calculate BTP yield

Enter in the simulator how much to invest in BTP and the net yield will be calculated immediately by processing the purchase price, maturity of the security, coupon interest, purchase day, investment amount, reduced taxation of 12.5%

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What they say about us

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Ettore
I've been using BTPfacile.it for some time and can confidently say it's one of the most useful and intuitive tools for those who want to invest in Italian government bonds (BTPs) with an informed mind. The site is clear, fast, free, and displays the average annual net yield in just a few seconds, something that's often difficult to understand with official data. Thanks to BTPfacile.it's BTP investment simulator and the ability to filter by maturity, type, and yield, I can always find the right security for my needs. I regularly recommend it to friends and family, even those with little investment experience: everyone finds it simple to use and very helpful in understanding what they're really buying. Congratulations to the team: you're doing a great job!
Paolo
A BTP yield simulator useful for calculating the expected earnings from an investment in Multi-Year Treasury Bonds. It takes into account variables such as the interest rate, the duration of the bond and taxes.
David
I think BTPfacile.it is a great tool for those interested in investing in BTPs. The site offers useful features such as an investment simulator, which allows you to calculate net returns in real time, helping investors make informed decisions. In addition, the platform is intuitive and easy to use, making it accessible even to those who do not have much experience in the investment field.
Disclaimer
All information displayed on BTPfacile.it is to be considered for informational purposes only and does not constitute in any way an investment, savings, legal or tax advice. The data displayed is generated by our systems automatically and despite our continuous commitment to offering the best possible service and the best online BTP investment simulator, we do not guarantee the accuracy of the information and we do not assume any responsibility regarding the use of the information itself
The BTPfacile.it team
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