How to start trading German DAX 30 with Capital.com?

To start trading German DAX 30 with Capital.com, Open Capital.com CFD Account and log in to the Capital.com Official Website.

Then you need to make a deposit to your account before starting trading German DAX 30.

DAX 30 index trading hours are 09:00-17:30 (CET), pre-market trading hours are 08:00-09:00, and after-hours trading hours are 17:30-22:00.

On the Capital.com trading platform, you can use Contracts for Difference (CFD) to trade the German DAX 30 index and track the DAX index market anytime, anywhere.

Germany 30 (Germany 30) is a security code adopted by leveraged trading providers such as Capital.com to represent the German DAX 30 index, or DAX.

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Why is the German DAX 30 index so important?

The German DAX 30 Index (The Deutscher Aktienindex), referred to as DAX, is composed of 30 blue chip stocks. The constituent stocks of the index are all listed and traded on the Frankfurt Stock Exchange (FSE), and the stock index prices are updated in real time.

Because the market value of the companies that make up the DAX 30 index accounts for 75% of the total market value of the Frankfurt Stock Exchange, the DAX 30 index is often tasked as a barometer of the German economy. This is also one of the reasons why DAX trading is so popular. You can track DAX market real-time on our trading platform.

The German economy is the largest in the European Union and the fifth largest in the world. Its market activity and liquidity are the key reasons for attracting global investors to trade DAX.

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How to trade DAX index CFDs?

DAX index prices are characterized by high volatility, long trading hours, and small spreads. Common trading methods include futures and contracts for difference (CFD). CFD trading allows you to go long or short the market, no longer limited to the traditional market.

One of the reasons why traders choose the DAX index is that the trend of the index is relatively easy to analyze and predict. Regardless of the time frame, DAX 30 traders can usually easily find the key points of the market trend. This makes the German DAX 30 more and more popular with global CFD traders.

Here, you can experience DAX CFD trading. Register and log in to the Capital.com account, open the web page or download the mobile application, and have one-stop direct access to the world’s major hot trading markets.

You may have noticed that the companies that make up the DAX index basically come from heavy industries, most of which are automobile manufacturing and chemical industries, such as BMW and BASF.

Daimler (Daimler AG, the parent company of Mercedes-Benz), BMW (BMW) and Volkswagen (Volkswagen) three major automobile manufacturing companies hold a large weight in the DAX index.

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How is the DAX 30 index calculated?

To become a component stock of the DAX 30 index, it must meet: the publicly traded shares shall not be less than 15% of the company’s total value ; the listing time shall not be less than 3 years . In addition, the following conditions must be met:

  • Belongs to the Frankfurt Stock Exchange Premium Market (Prime Standard)
  • Representing the German economy

The German DAX index is a market-value-weighted stock, and a company with a larger market value has a greater influence on the price of the DAX stock index. However, the weight of any one constituent stock will not exceed 10% of the DAX index.

Companies listed in the German DAX index are subject to quarterly review, and their order books and market capitalization determine whether they can be included in the index.

The price used to calculate the DAX index comes from the trading platform Xetra. This makes the index market more liquid and also makes the index more popular with traders.

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History of the German DAX Index

On July 1, 1988, the German DAX index was listed on the Frankfurt Stock Exchange for the first time, with a starting index of 1,163 points. At the time, the editor of the German financial newspaper Börsen-Zeitung, Frank Mella, was tasked to compile a German stock market index. After the release of the DAX index, Mela also gained fame.

Since 1988, Börsen-Zeitung, the operator of the DAX 30 index, has added several related indexes. These include MDAX, which represents the 50 largest companies by market capitalization after DAX; TecDAX, which represents the 30 largest technology companies outside of DAX; and HDAX, which is composed of three indexes: DAX, MDAX and TecDAX.

Compared with similar indexes in the United Kingdom and the United States, the share price of the German DAX index tends to be more volatile, and DAX trading is an extremely attractive trading opportunity for traders. However, like all transactions, DAX index trading also carries risks.

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What is Prime Standard?

The German Index (DAX) includes the top 30 company stocks in the FSE Prime Standard on the Frankfurt Stock Exchange. The advanced market means that the company has stricter regulations and more transparent management.

If it does not meet the requirements of the advanced market, the listed company will be classified as a general market (General Standard) and cannot become a component stock of the DAX, MDAX, TecDAX or HDAX index.

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