When a security is trading at its face value, it is said to be trading at par. Par value is determined when a security is initially issued, and is stated on the face of the document. For example, if a bond has a face value of $1,000 and it sells on the open market at that price, then it is trading at par. If the bond were to instead be trading for a higher amount, it is trading at a premium. If the bond is trading at a lower amount, it is trading at a discount. Since market prices can fluctuate on a daily basis, there is no real significance to trading at par – the event may occur briefly during trading, after which prices move in a higher or lower direction.