U.S. Treasury Strips Trading

For more information on U.S. Treasury Strips, compounding interests, and zero-coupon bonds, please visit the Investment Education section of Scottrade's Knowledge Center.

To buy a U.S. Treasury Strip from your Scottrade account:

  1. Hover over Trade at the top of your account page.
  2. Click CDs & Bonds Overview under the Trade CDs & Bonds heading.
  3. In the horizontal row of tabs that appears, click on the U.S. Treasury Strips tab.
  4. Enter your search criteria in the grid provided. You may search bonds using a variety of parameters including issuer, CUSIP list, maturity dates, and coupon payments.
  5. Once you have entered your parameters, click the Find Bonds button at the bottom right of the screen. A list of bonds meeting your desired requirements will appear.
  6. To purchase one of the bonds that meet your criteria, click on the blue Buy button on the right side of your screen in the same row as the bond you wish to buy.
  7. Enter the quantity you wish to purchase in the Order Qty box in the middle of the screen.
  8. You may select the Calculate button to the bottom left of the page to retrieve the correct total. If you choose not to re-calculate at this time, the totals will automatically re-calculate once the order has been finalized.
  9. Select the Preview Order button to the bottom right of the page. This will take you to a detailed view of your purchase.
  10. To finalize your purchasing order, click on the Submit Order button to the bottom right of the page.

To sell a U.S. Treasury Strip in your Scottrade account:

You may sell your bonds online or through your local Scottrade branch office. If you call your local branch office for assistance selling bonds, please be ready to provide your bond's description, size and CUSIP number. Your branch broker will be able to provide you with a quote. Although U.S. Treasuries have no credit risk, the price you will receive for your bonds will depend on market conditions and may be higher or lower than the price of your original purchase. All trades are placed as market orders because the price may change between the time you are given the quote and the time the trade is actually executed. Scottrade reserves the right to act as principal on all U.S. Treasury trades made from your Scottrade account.

Bonds involve risks including, but not limited to interest rate risk, reinvestment risk, inflation risk, call risk, liquidity risk, credit risk, market risk, default risk, event risk and a risk of loss of principal. New issue offerings are sold by prospectus or offering circular available at www.scottrade.com. Investors should read these carefully. CDs may be covered by FDIC insurance while bonds may be covered by SIPC insurance. FDIC and SIPC coverage are not the same. Visit www.fdic.gov or www.sipc.org for more information.