Germany DAX30 Index
The DAX30 represents Germany's Market Index of the top Blue Chip Stocks. This Index represents the Top 30 Most Liquid and Traded Stocks which are transacted in Frankfurt Stock Market. Because Germany is the largest economy in Euro-Zone, the DAX 30 Stock Index is one of the more popular Index transacted by investors.
Just like currencies, the Germany DAX30 Stock Index also has got a chart representation and the chart can be transacted and analyzed by traders. Traders can place a buy or sell order and trade this stock index using standard lots.
The Germany DAX30 Index Trade Chart
The Germany DAX30 chart is displayed & shown above. On the above example illustration this financial instrument is named GER30CASH. As a trader you want to find a broker that provides Germany DAX30 trade chart so that you as a trader can start to trade it. Example shown & displayed above is of Germany DAX30 Stock Index on MT4 FX TradeTrading Platform.
Other Details about Germany DAX30 Stock Indices
Official Indices Symbol - DAX:IND or GDAXI
The 30 components stocks which constitute Germany DAX30 Index are re-evaluated few times each year to figure out if to make changes to this composition or not. Stocks which are not doing well may be replaced with other stocks which are doing/performing well.
Trading System for Trading Germany DAX30 Index
The Germany DAX30 Index is made up of blue chip stocks which trade in Frankfurt Stock Exchange Market 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 and moving up and up because the companies behind these stocks are the best and most profitable companies in Germany.
The Germany DAX30 Stock Index is also revised few times each year so that as if one Indices isn't doing good then it's replaced with an alternative blue chip Indices that is doing good. This ensures that most of the times Germany DAX30 Stock Index will keep heading upwards.
As a stock index trader you want to be biased and keep on buying as the index heads and moves upward. When the German economy is performing good (most of the times it's performing good) this upwards trend is more than likely to be the one that is ongoing. A good index strategy would be to buy price dips.
During Economic Slow-Down and Recession
During the economic slowdown & recession times, corporations start and begin reporting slower revenues, slower profits and lowers growth projections. It is due to and because of this reason that investors start to sell stocks of companies which are recording & reporting lower profits and therefore Indices tracking these specified stocks will also begin to move & head downward.
Hence, during these times, trends are a lot more likely to be heading and moving downward & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index which you are trading.
Contract Specifications
Margin Requirement for 1 Lot - € 85
Value per Pip - € 0.1
Note: Even though general and overall trend is generally moves upward, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices may move in a range or even retrace and pull back, the market retracement move may also be a significant one at times & hence as a trader you need to time your trade entry strictly when using this strategy: Index strategy & at same time use suitable and appropriate & appropriate & proper money management strategies and guidelines just in case there is more unexpected volatility in the market movement. About indices equity management guidelines courses: What is equity management and equity management strategies.
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