DAX 30 Index (GDAXI) | DAX Futures

DAX 30 Index (GDAXI)
Real-time index price updates for DAX 30, technical analysis and fundamental analysis.

Technical Analysis DAX 30 Index Futures

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What Is the DAX Stock Index?

The DAX—also known as the Deutscher Aktien Index—is a stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt Exchange. The prices used to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume. The DAX was created in 1988 with a base index value of 1,000. DAX member companies represent roughly 75% of the aggregate market capitalization that trades on the Frankfurt Exchange.

Understanding the DAX Stock Index

The DAX index, which tracks 30 large and actively traded German companies, is considered by many analysts to be a gauge for the health of the German economy. The companies listed in the DAX are multinational companies that influence the domestic German economy and the global economy as well. The success of these companies has greatly contributed to what is known as the "German economic miracle" or Wirtschaftswunder, a term that describes Germany's rebirth after World War II.

The companies in the DAX index span a wide range of industries. For example, Bayer AG is a pharmaceutical and consumer health company founded in 1863 and is well-known for its pain and allergy-relief products. Allianz SE is a global financial services company that focuses on providing customers with insurance and asset management products. Adidas AG develops, manufactures, and markets popular athletic footwear, apparel, and equipment.

Special Considerations

In a different twist from most indices, the DAX is updated with futures prices for the next day, even after the main stock exchange has closed. Changes are made on regular review dates, but index members can be removed if they no longer rank in the top 45 largest companies, or added if they break the top 25.

The vast majority of all shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a near-95% adoption rate for the stocks of the 30 DAX members.

Requirements for the DAX

As with the DAX, all exchanges have specific listing requirements for those who wish to offer their securities for trading. In general, these include regular financial reports, audited earning reports, and minimum capital requirements.

For example, the NYSE has a key listing requirement that stipulates a company must be profitable, have at least 400 shareholders who own more than 100 shares of stock at a minimum share price of $4, and a minimum of 1.1 million publicly traded shares. For worldwide market trading, the requirements companies must meet are stricter.

To be listed on the DAX, a company must pass strict selection criteria and continue to meet those requirements each quarter when the composition of the index is re-evaluated. Some of the requirements include that shares must have a minimum free float of 10%, the listing company must have its legal or operating headquarters in Germany, and the company must be listed in the Prime Standard segment, which is reserved for only those companies that meet stringent transparency rules.

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What is online stock trading and how does it work?

Online stock trading means buying and selling shares of companies publicly traded on a stock exchange. The price of a particular stock is determined by the total number of shares a company has created, usually measured in the currency of the stock market it is listed on, for example, pence (in the UK), euro (in Europe), yen (in Japan) and US dollars (in the US). In line with the law of supply and demand, when there are more traders who want to BUY a company than SELL it, its stock price typically rises. Conversely, when there are more traders who want to sell a company than buy it, the stock price tends to decrease. To see a full list of shares CFDs offered by Plus500, click here.

What is stock CFD trading?

CFD trading on shares is a form of trading that enables you to speculate on prices of publicly-listed companies traded on exchanges such as the New York Stock Exchange, London Stock Exchange, NASDAQ and Tokyo Stock Exchange, without the need to own the underlying stocks. Another unique feature of stock CFD trading is the ability to increase your market exposure through leverage (or margin). This means you only need a fraction of the total trade value.

How do you start day trading on the stock market prices?

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  1. If you don’t already have a Plus500 account, open a Trading Account Here.
  2. Complete your account registration and documents verification, then deposit funds.
  3. To search for a specific stock, click into the search bar and type the company’s name or symbol.
  4. Consider placing stop orders in advance: you can define the level of profit you would be happy with and/or the level at which you would like to close out the position should the trend turn against you.
  5. Open a trade.