Germany DAX30 Index
The DAX30 represents Germany's Market Stock Index of top Blue Chip Stocks. This Stock Index represents Top 30 Most Liquid Stocks which are traded in Frankfurt Stocks Market. Because Germany is the largest 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 and the chart can be traded and analyzed by traders. Traders can place a buy or sell order and trade this stock index using standard lots.
The Germany DAX30 Chart
The Germany DAX30 trading chart is displayed & displayed above. On above example this instrument is named GER 30CASH. As a trader you want to find a broker that provides Germany DAX30 trading chart so that you can start to trade it. Example displayed above is of Germany DAX30 Stock Indices on MT4 Forex Trading Software.
Other Details about Germany DAX30 Index
Official Symbol - DAX:IND or GDAXI
The 30 components stocks which constitute Germany DAX30 Index are re-evaluated few times each year to determine 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 Germany DAX30 Index
The Germany DAX30 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 most times. This is because generally the best stocks in Frankfurt Bourse will generally keep heading up and up because the corporations behind these stocks are the best & most lucrative corporations in Germany.
The Germany DAX30 Index is also revised few times each year so that if one Indices isn't doing well then it's replaced with an alternative blue chip Indices that's doing good. This ensures that most of the times Germany DAX30 Index will keep heading upwards.
As a trader you want to be biased and keep buying as the index moves upwards. When German economy is performing good (most of the times it's performing good) this upwards trend is more likely to be in-favor. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and 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 will also begin to move downward.
Hence, during these times trends are likely to be moving downward and 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 and Specifications
Margin Requirement Per Lot - € 85
Value per Pip - € 0.1
Note: Even though general trend is generally upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices may move in a range or even retrace & pull-back, the market retracement move may also be a significant one at times and therefore as a trader you need to time your entry precisely when using this strategy and at same time use proper equity management guidelines just in case there's more unexpected volatility in the market movement. About money management methods in stock indices topics: What is Stock Index equity management & Indices equity management methods.
