Germany DAX 30 Stock Index
DAX 30 represents Germany's Market Stock Index of top Blue Chip Stocks. This Index represents the Top 30 Most Liquid Stocks that trade on the Frankfurt Stock Exchange Market. Because Germany is the biggest economy in the EuroZone, DAX 30 Stock Index is one of the most popular Stock Index traded by traders.
Just like forex currencies, Germany DAX 30 Stock Index also has a trading chart representation and the chart can be traded and analyzed by traders. Traders can place a buy or sell trading order & trade this index using standard lots.
The Germany DAX 30 Stock Index Trade Chart
The Germany DAX 30 Stock Index trade chart is displayed and illustrated above. On the example above this financial instrument is named as GER30CASH. As a trader you want to find a broker that provides this Germany DAX 30 Stock Index trade chart so that you can start to trade it. The stock index example above is of Germany DAX 30 Stock Index on the MT4 Forex & Stock Indices Trading Software.
Other Trading Information about the Germany DAX 30 Stock Index
Official Symbol - DAX:IND or GDAXI
The 30 components stocks that makes up Germany DAX 30 Stock Index are revised a few times a year to determine if to change this composition or not. Stocks that are not performing well may be replaced with other stocks that are doing well.
Strategy for Trading the Germany DAX 30 Stock Index
Germany DAX 30 Stock Index is comprised of blue chip stocks that trade in the Frankfurt Stock Exchange picked from the best performing sectors in Germany; therefore a good trading strategy to trade the Germany DAX 30 Stock Index is to trade long most times. This is because in general the best stocks in Frankfurt Stock Exchange will generally keep heading up & up because the companies behind these stocks are the best & most lucrative companies in Germany.
The Germany DAX 30 Stock Index is also revised a few times every year so that if a stock isn't doing well then it's replaced with another blue chip stock that's doing good. This ensures that most times the Germany DAX 30 Stock Index will keep going upward.
As a trader you want to be biased and keep buying as the stock index moves up. When the German economy is doing well (most times it's doing well) this upward trend is more likely to be ruling. A good index trade strategy would be to buy dips.
During Economic SlowDown and Recession
During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.
Therefore, during these times stock index trends are likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.
Contracts & Specifications
Margin Required Per 1 Lot - € 85
Value per 1 Pips - € 0.1
NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock index trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index trading topics: What is stock index money management & stock index money management methods.
