Questions about DAX 30 Trading
What is DAX 30?
The DAX 30 is Germany’s leading stock index, and tracks
the top 30 largest and most liquid securities listed on the Frankfurt Exchange. The data used to calculate the
DAX 30 comes via an electronic trading framework called Xetra, and DAX 30 is run by Deutsche Borse AG. The DAX
30 is made up of many major German brands such as BMW, Merck and Deutsche Bank coming from a wide range of
sectors. DAX stands for Deutscher Aktien Index or the German Stock Index.
DAX 30 history
The DAX 30 was launched on 30 December, 1987, and the
index began with a base rate of 1,000. The DAX’s all time high was reached on 23 January, 2018, at a closing
level of 13,559.60, more than 13 times its original opening level over 30 years previously. There are two
versions of the DAX 30, one called the performance index measures total returns with dividends, and the price
index which only measures the price of the fund without any consideration to profits received from dividends.
What is the DAX 30 composite index made up of?
The DAX 30 consists of securities from a number of
diverse areas of the German economy. These include clothing, insurance, chemical, pharmaceuticals, energy,
fintech and electronics, with the DAX 30 representing the largest companies listed on the Frankfurt Exchange.
Global brands and institutions are included within the DAX 30, and these include Adidas, Allianz, Bayer,
Deutsche Lufthansa, Siemens, Volkswagen, Daimler and global semiconductor giant, Infineon Technologies.
What top 10 companies are in the DAX 30?
Company |
Index Weighting (%) |
SAP |
12.3 |
Linde PLC |
8.23 |
Allianz |
8.07 |
Siemens |
7.44 |
Deutsche Telkom |
6.49 |
BASF |
5.25 |
Adidas |
4.82 |
Daimler |
4.66 |
Bavarian |
4.38 |
BMW |
3.5 |
*information as of May 2020
Why is the DAX 30 Index important to traders?
The Frankfurt Exchange is one of the largest and most
well-known stock exchanges in the world with its unofficial founding date being in the year 1585. Frankfurt
has long been a powerhouse of global finance, while German itself has one of the strongest economies in
Europe, if not the world. Although the size of the DAX 30 basket is comparatively small at just 30 stocks, the
calibre of these 30 is undeniable with many multi-billion dollar giants being included. While much of Europe
has carefully transitioned throughout the introduction of the European Union, Germany has fared particularly
well and investment into the German economy is a popular choice for many traders.
How is DAX 30 calculated?
The DAX 30 is a market capitalization-weighted index,
which means that larger companies by overall market value contribute a greater amount to the value of the
index. The total amount is then divided using a divisor in order to make the reporting and analysis of the
index more manageable. The DAX 30’s value is calculated by combining each of the baskets of securities’ total
number of outstanding shares by the last sale price of each. Following this each stock is weighted according
to its size in relation to the rest of the basket.
Why trading DAX 30 makes sense?
The DAX 30 is a stock index rather than a single company
stock which means that the growth of the index is pushed along by 30 major companies. For traders, this means
the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a
growth in macroeconomic factors, most of the top companies will benefit together. realdexfasttrading’s ultra-fast
order
execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience.
The trading platform is packed with advanced trading tools, such as long and short positions, advanced order
types such as stop loss and take profit orders. The platform is also safe, secure, and offers 24/7 customer
support service via a live chat, community channels, and much more.
What is the best way to invest in the German stock market?
The best way to invest in the German stock market is to
invest in a basket of companies via the DAX 30 stock market index. The DAX 30 represents the overall health of
the German economy and the companies that make up its performance.
Is it possible to trade DAX 30?
Trading the DAX 30 is the smarter way to invest in the
German stock market. The reason being is that CFD trading lets traders profit from markets both ways, rather
than only when assets are rising in value.
What is the best time to trade DAX 30?
The best time to trade the DAX 30 is when German traders
start their trading day or close out a hard day's work. This makes open and closes especially volatile,
though, it can strike at any given time.
What is the DAX ticker symbol?
The DAX 30 trades under the DAX ticker symbol or the DAX
30 symbol for CFD trading on realdexfasttrading. realdexfasttrading offers leverage and long and short positions on
the DAX and
other major stock indices.