Gilts typically have a fixed rate of interest, which is paid semi-annually, and a fixed maturity date, at which point the principal is repaid to the investor. They can be bought and sold on the secondary market, allowing investors to trade their gilts with other investors.

The term "gilt-edged" refers to the high quality and low risk associated with these securities, and their reputation for being a safe and reliable investment. They are widely considered to be one of the safest assets available to investors, and are used as a benchmark for other debt securities, such as corporate bonds, in the UK market.