Germany DAX 30 Index

The DAX30 represents Germany's Market Index of the top Blue Chip Stocks. This Stock Index represents Top 30 Most Liquid and Traded Stocks which are transacted in Frankfurt Stocks Market. Because Germany is the biggest economy in Euro-Zone, the DAX 30 Index is one of the more popular Index transacted by investors.

Just like currencies, the Germany DAX 30 Stock Index also has a chart representation & the chart can be transacted and analyzed by traders. Traders can place a buy or sell order & trade this stock index using standard lots.

Germany 30 Stock Indices - Ger30 Chart

The Germany DAX 30 Chart

The Germany DAX30 chart is displayed and shown & shown above. On the above example illustration this financial and trading instrument is named GER 30CASH. As a trader you want to find a broker that provides Germany DAX30 chart so that you as a trader can begin to trade it. Example illustrated & displayed above is of Germany DAX30 Indices on MT4 FX Trade Platform.

Other Details about Germany DAX30 Stock Index

Official Symbol - DAX:IND or GDAXI30

The 30 components stocks which constitute Germany DAX 30 Index are re-evaluated few times each year to figure out if to make changes to this composition or not. Stocks which aren't performing well may be replaced with other stocks which are doing well.

Strategy for Trading/Transacting Germany DAX30 Stock Index

The Germany DAX 30 Index is made up of blue chip stocks which trade in Frankfurt Bourse selected from the top performing sectors in Germany; therefore a good indices trade strategy to trade Germany DAX30 Index is to trade long majority of the times. This is because generally the best stocks in Frankfurt Stock Exchange Market will in general keep heading up & up because the corporations behind these stocks are the best & most lucrative companies in Germany.

The Germany DAX30 Index is also revised few times each year so that as if one Index isn't doing well then it's replaced with an alternative blue chip Indices that's doing good. This ensures that majority of the times Germany DAX30 Stock Index will keep moving upwards.

As a trader you want to be biased and keep buying as the index moves upwards. When German economy is performing and doing good (most of the times it's performing good) this upward trend is more likely to be in-favor. A good indices trade strategy would be to buy the price dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks also will begin to move downward.

Hence, during these times, the trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index which you're trading.

Contracts and Specifications

Margin Requirement for 1 Lot - € 85

Value per Pip - € 0.1

Note: Even though overall trend is in general move upward, as a trader you've got to consider and factor in daily market price volatility, on some of the days the Indices might move in a range or even retrace & retracement, the market retracement move may also be a significant one at times & hence as a trader you need to time your entry strictly when using this strategy & at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About equity money management methods in indices lessons: What is Index equity management & Indices equity management strategies.

Get More Courses: