How to buy and sell German DAX30 (DAX, GER30) stock index?

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The Deutscher Aktienindex (DAX), also known as the GER30 or DAX30, measures the performance of Prime Standard’s 30-40 largest and most liquid German companies.

Many analysts consider it as a benchmark to measure the health of the German economy.

By opening an account with LMFX, you can invest in DAX30 (DAX, GER30) stock index along with other Forex and CFD markets (such as Gold, Silver, Commodities).

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How is the DAX 30 calculated?

DAX30, a leading German company, is calculated using the free float method. That is, only the number of readily available shares is considered. The index is weighted by market capitalization, and the top companies in the index will have a significant impact on the overall price. However, the weight of listed companies cannot exceed 10%.

The prices used to calculate the index are taken from Xetra, an electronic trading system operated by the German stock exchange Frankfurter Wertpapierbörse (FWB). Since January 1, 2006, Xetra has been measuring the price of the DAX30 every second.

The companies that make up the index are reviewed quarterly. Adidas, Volkswagen and Bayer are examples of multinational companies included in the DAX30. The constituent companies of the index are global and can influence both the German and global economies.

To be included in this index, companies must be based in Germany and listed on the Prime Standard segment of the FSE (Frankfurt Stock Exchange), especially since the wirecard financial scandal at the end of 2020. Must be. This segment includes companies that comply with much more stringent transparency regulations than the General Standard segment.

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History of DAX30

DAX30 was founded in July 1988 with 1,000 points. Initially, the index consisted of the 30 most important companies on the Deutsche Boerse.

However, on November 24, 2020, the Deutsche Boerse announced that it would add 10 members to the index. This expansion is expected to take place during the third quarter of 2021, after which it will consist of up to 40 companies.

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Historical record of DAX30

The DAX30 is an index that has entered the market with only 1,000 points, but has experienced a valley like other stock market indexes, but has gradually increased its price.

Looking at the historical chart of the German index, it seems that the overall trend is on the rise, but the DAX30 has also recorded a big low. After the IT bubble, it fell below 2600 points in 2003 and fell below 3700 points in 2008 due to the effects of the financial crisis.

The COVID 19 pandemic, which began to impact the world in 2019, caused the index to hit lows throughout the year, but on July 12, 2021, restrictions were relaxed and the German consumer price index soared. , Dax 30 rose to 15,806.90 points, a record high.

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