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DAX Stock Index Overview, History, Listing Requirements

Six of the 30-stock Dow Jones Industrial Average will be releasing their quarterly results this week. While demand for artificial intelligence applications is seeing rapid growth, several non-tech companies are well-positioned to benefit directly from the AI boom over the next few years, according to Scotiabank. European markets are heading for a slightly lower open, IG data showed. Analysts in a company-compiled poll forecast EBITDA of 672 million euros and comparable sales growth of 2.6%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was slightly higher than the previous year at 653 million euros, while comparable sales fell 1%. Philips shares were 6.2% lower in mid-morning trade, after the Dutch conglomerate missed results expectations and announced it had reached a settlement with the U.S.

  1. DAX is calculated and updated every second as a price and performance index from Xetra prices.
  2. Hence, investors tend to leverage DAX to potentially magnify profits, but also losses.
  3. The Deutscher Aktienindex, or DAX, tracks the value of the 30 biggest companies listed on the Frankfurt Stock Exchange (FSE) and this is represented in real time by the DAX price.
  4. Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more.
  5. According to Blackwell Global, the DAX 40 has a more than 90% correlation with major US stock indices and a 70% inverse correlation to the Euro.

Traders enjoy trading the DAX because trends can often be easy to spot on live charts. Traders who trade DAX 30 often find the trends to be well defined across a variety of timescales, making the DAX popular with CFD traders around the world. As a blue-chip stock market index, the DAX is very similar to the Dow Jones Industrial Average (DJIA), which also tracks large, publicly owned companies. The company made a provision of 363 million euros ($393.5 million) in the fourth quarter for the FDA agreement, which also details improvements it must make to be able to sell new respiratory devices in the U.S. again.

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The organizations that are listed in the DAX Index tend to be multinational companies that are known to impact the domestic economy in Germany along with its global economy at the same time. The DAX is the globally-known benchmark for the German stock market and contains the country’s biggest and best known blue-chip shares. The DAX index is Germany’s equivalent to the FTSE 100 in the UK or the S&P 500 and Dow Jones in the United States. The DAX Stock Index was created in 1988 at an index value of 1,000 points. At that time, the DAX companies made up around 75% of the total market capitalization of the entire Frankfurt Exchange. As of July 2020, the DAX Stock Index value is at around 13,000 points.

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Softer guidance from mega-cap tech stocks could send stock markets back to square one, one analyst said. The DAX share price often tends to be considerably volatile in comparison to its UK and US counterparts, making DAX trading an attractive opportunity for traders. Companies trading on the German DAX are reviewed quarterly – they are added or removed based on the size of their order book and their market cap. Just sign up at and use our advanced web platform or download the best-in-class investment app to trade on the go.

DAX Stock Index

It is very similar to the Dow Jones Industrial Average (DJIA), which is a price-weighted index that includes 30 very large U.S. companies. The DAX Stock Index is calculated based on the free-float adjusted market-cap weighted index methodology. Companies that are listed on the DAX are multinational companies that operate in multiple countries beyond just Germany.

The DAX price typically provides traders with a high degree of liquidity, long trading hours and tight trading spreads. You can trade the DAX index today using CFDs (contracts for difference) or futures. Using CFDs to trade DAX will allow you to go long or short without having to deal with conventional exchanges, like Eurex. The Deutscher Aktienindex, or DAX, tracks the value of the 30 biggest companies listed on the Frankfurt Stock Exchange (FSE) and this is represented in real time by the DAX price.

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The DAX—also known as the Deutscher Aktien Index or the GER40—is a stock index that represents 40 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 Stock Index is responsible for tracking around 30 or more large-sized and actively-traded companies in Germany. It is regarded by several analysts to serve as the gauge for the condition of the entire German Economy.

DAX Overview

Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

Hence, investors tend to leverage DAX to potentially magnify profits, but also losses. For this reason, it is important to create a sustainable risk management strategy, bearing in mind the amount of capital that you are putting at risk. The prices used to formulate the DAX index are calculated by the second through trading platform Xetra.

For example, the S&P 500 Index – which is one of the most reputable U.S. indexes, requires companies to post four straight quarters of profitability before being considered eligible to be listed in the index. Alternatively, a more positive global risk sentiment may yield a trading environment that is bullish for European indices. In this case, the bulls would look to push the DAX 30 towards 15,300 where the 127.2% Fibonacci extension resistance of the coronavirus-fueled market retracement sits. Germany’s indices are taken from the ‘Prime Standard’ portion of stocks on the Frankfurt Stock Exchange, which has strict regulations in place that govern transparency and imposed by German law.

Germany’s DAX 30 Index, also known as The DAX Index or The DAX for short, is a blue chip stock market index made up of the 30 largest, most actively traded companies listed on the Frankfurt Stock Exchange. The weight of each individual security in the index is proportionate to the total market capitalization. The DAX is the German blue-chip index and consists of the 40 German companies with the highest market capitalization and the largest stock market turnover, the performance of which is reflected in the DAX.

In total, the companies listed in the DAX represent around 79 per cent of the German stock exchange value. For this reason, the DAX and its performance are also regarded as an indicator for the German share market as a whole. Many DAX constituents are large multinational companies that have a high level of significance to the global economy in addition to the German domestic market.

It is a type of stock index that is known to represent around 30 most liquid and the largest companies in Germany that are known to trade on the famous Frankfurt Exchange. The prices that are being utilized for calculating the DAX Stock Index meaning are known to come with the help of Xetra. For calculating the respective index weightings in addition to the given measure of the average trading volume, hire mariadb developers a method known as a free-Float mechanism is used. International investors can gain exposure to The DAX using a number of exchange-traded funds (ETFs) that trade on European exchanges. Some of these companies trade as American depository receipts (ADRs) in the U.S., but others only trade on foreign exchanges so international investors might need foreign or global brokerage accounts to purchase them.

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