Trading on the Dax 30

Using the CFDs offered by the majority of Forex brokers, the stock exchange indices are by far the most popular with traders. Among the indices, the Dax 30 holds a particular position of importance and can prove highly profitable due to the numerous indicators that enable the trader to identify the trends. In this article you can learn more about what the Dax 30 actually is and how to trade it using CFDs.

 

What is the Dax 30? 

The Dax 30 is a highly important Stock Exchange Index in Frankfurt, Germany. Relative to its transaction volume it is also the major European Index on the global field. It represents the 30 largest businesses quoted on the German stock exchange and therefore enables a general overall view of the economic health of the country. 

The Dax 30 came into being at the same time as the CAC 40, in 1988. It includes in its calculations the quotations of the 30 businesses that are most representative of the German economy which move and change over time. However, it should be noted that half of the businesses that it comprises are the same as at its inception. 

As Germany is one of the pillars of the automobile industry, the businesses concerned form a large part of this sector. Apart from the automobile industry the Dax 30 also heavily represents the banking sector.

 

The types of industries represented by the Dax 30: 

In the same way that the Nasdaq represents technological assets so the dax 30 is strongly representative of the automobile and banking sectors. These types of industries are highly representative of the strength of the German economy. However there are also less evident sectors of activity such as energy and others less popular.  

You should however remain prudent concerning the interpretation of the Dax 30 as nearly 50% of the businesses quoted belong to foreign businesses.

 

The historical rates of the Dax 30:

The Dax 30 has historically experienced a high volatility although the rate has over time moved on a rise reaching a high point of 8,100 points in 2000 before finally plunging to a more reasonable level. 

However the movements recorded on this index have always been large and so it is possible to make major profits in a short period of time. Due to this strong volatility it is possible to make large sums of money by trading this index using CFDs.

 

How to trade the Dax 30 using CFDs:

As you have no doubt understood, to trade on the Dax 30 using binary options you will need to understand and analyse the entire German economy. To do so it is pointless studying all 30 businesses that are quoted on this index but you can more generally refer to the movements in the major sectors of activity such as automobiles or banking which exert a strong influence on this index.  

Of course, all the economical publications relating to Germany are important and can influence the rate of this index. The Dax 30 is subject to problems currently connected to the banking sector of the Euro zone. Therefore all news relative to the European banking sector can have an impact on the Dax.  

To be sure to place all chances possible on your side when trading the Dax 30, you should monitor all events concerning Europe and Germany, whether they be political, economical or social. The economic calendar will indicate all such events. 

Using the charts is essential when trading in CFDs over the short term. Therefore do not hesitate to correlate your technical analysis to your fundamental analysis in order to extract the maximum profit.

 

Trading on the German market: The DAX 30!

Start trading now on the DAX 30 using CFDs. You will benefit from the high volatility of this index and make reasonable profits by benefitting from leverage. You will find lots of advice and information concerning this asset.

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