Germany DAX30 Index
The DAX30 represents Germany's Market Stock Index of top Blue Chips Stocks. This Stock Index represents Top 30 Most Liquid Stocks that are traded in Frankfurt Stocks Market. Because Germany is the biggest economy in Euro-Zone, the DAX30 Index is one of the most popular Stock Index traded by investors.
Just like currencies, the Germany DAX30 Index also has a chart representation & the chart can be traded & analyzed by traders. Traders can place a buy or sell order & trade this stock index using standard lots.
The Germany DAX30 Index Trading Chart
The Germany DAX30 Index trading chart is shown and illustrated above. On the above example this instrument is named GER 30CASH. As a trader you want to find a broker that provides Germany DAX30 Index trading chart so that you can begin to trade it. The Indices example above is of Germany DAX30 Stock Indices on MT4 Forex and Stock Indices Trading Software.
Other Information about Germany DAX30 Index
Official Symbol - DAX:IND or GDAXI
The 30 component stocks that makes up Germany DAX30 Index are revised a few times a year to determine if to make changes to this composition or not. Stocks which are not performing well may be replaced with other stocks that are doing well.
Strategy for Trading Germany DAX30 Index
The Germany DAX30 Index is made up of blue chip stocks that trade in Frankfurt Bourse selected from best performing sectors in Germany; therefore a good trade strategy to trade Germany DAX30 Index is to trade long most times. This is because generally the best stocks in Frankfurt Bourse will generally keep heading up & up because the companies behind these stocks are the best & most lucrative companies in Germany.
The Germany DAX30 Index is also revised few times every year so that if one Indices is not doing well then it is replaced with another blue chip Indices that is doing good. This ensures that most times Germany DAX30 Index will keep going upward.
As a trader you want to be biased & keep buying as the index moves upward. When German economy is doing well (most of the times it is doing well) this upwards trend is more likely to be ruling. A good stock indices trade strategy would be to buy the dips.
During Economic Slow-Down & Recession
During economic slow-down & recession times, companies begin to report lower profits & lower growth prospect. It is because to this reason that traders begin to sell stocks of companiesthat are reporting lower profits & therefore Indices tracking these specified stocks will also begin to move downward.
Therefore, during these times Stock Index trends are likely to be moving downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you are trading.
Contracts & Specifications
Margin Requirement Per Lot - € 85
Value per Pips - € 0.1
Note: Even though general trend is generally upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the Indices market retracement move might also be a significant one at times & therefore as a trader you need to time your trade entry precisely using this trade strategy: Stock index trading strategy and at same time use proper money management guidelines just in case there is more unexpected volatility in the market trend. About money management methods in stock indices trading topics: What is Stock Index money management & Indices money management methods.
