What is the DAX 30 Index?
The DAX 30 is made up of 30 of the largest and most liquid German companies listed on the Frankfurt Stock Exchange. The Germany 30 index is referred to as the DAX acronym due to its former German name of Deutscher Aktien Index 30 and was introduced on December 31, 1987 with a base value of 1000. It was founded to be an indicator of the German economy similar to the Dow Jones Industrial Average (DJIA) in the U.S. and is considered as one of the most important indices for European investors.
For a company to be included they must represent Germany and have had a minimum of 15 per cent of their market capitalisation listed on the German stock exchange for at least 3 years. A large portion of the companies included in the index derive more than 75 per cent of their income from international trade and global outlook can play a pivotal role in the performance of the index. The DAX 30 is a market capitalisation index meaning that the larger constituents represent a correspondingly larger percentage of the overall price.
DAX 30 Index Performance
Founded to give the investing world a window to the German economy and entice global capital the DAX 30 has seen huge fluctuations in price since its inauguration. These fluctuations have corresponded with global downturns and periods of expansion, owing to the internationally focused nature of the index. There were massive declines in value during the Asian crisis, US tech bubble and the financial and housing crashes of the 2000’s as well as the 2020 pandemic.
DAX trading averaged over 159 million transactions per day and reached its all-time high price of 13797.12 € in February of 2020. As the world learned the true extent that the coronavirus was to have on the economy, like almost all securities, the DAX 30 tumbled and reached its low point on March 18 at 8441.71 €. It has recovered steadily since the crash in March and the price today can be viewed on the live price chart.
There has been some discussion regarding the expansion of the DAX 30 to include the largest 50 publicly listed companies in Germany in order to better embody the performance of the overall German economy. The thinking behind this discussion is that a large percentage of the economy is based on mid-sized family-owned companies and by increasing the number of constituents it would provide better representation. At the time of writing, this is only a discussion and there are no concrete plans to expand.
How to Trade DAX 30 Index?
DAX trading occurs on the Frankfurt Stock Exchange. Traditionally, those looking to trade DAX 30 would purchase directly through the Frankfurt Stock Exchange or through a broker. Traders are also able to purchase derivatives based on the DAX 30 index such as CFD, options, futures or tokenised assets.
Traders using the Currency.com tokenised platform are able to profit from price movements by purchasing tokenised DAX 30 index securities. Tokenised securities are crypto derivatives whose value is linked to the value of a particular asset like a stock, ETF or index. The token is registered using distributed ledger technology (DLT) the same way cryptocurrency is recorded. This technology allows for transactions using crypto without the need of converting back and forth with fiat currency. Utilising this technology makes tokenised security trading efficient, inexpensive and secure.
When buying tokenised stocks you can take long or short position depending on where you feel the price is heading. If you think the price will decrease you can short the tokenised stock and if you think it will increase you can take a long position. Trading in tokenised securities on Currency.com also allows for you to benefit from the leverage offered on the platform, up to 1:100.
Tokenised DAX 30 Index Trading Guide
Trading tokenised DAX 30 index securities is no more difficult than traditional investing. To begin with DAX 30 derivatives, you will follow need to follow some simple steps:
- Step 1: Register for an account with Currency.com
- Step 2: Deposit funds (with crypto or fiat) in the account.
- Step 3: Determine the position size desired, accounting for leverage offered by Currency.com
- Step 4: Determine your position (long or short) based on expected share price movement and purchase tokenised DAX 30 derivatives.
- Step 5: Currency.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- Step 6: Close your position when applicable. You can set a take profit or stop loss indicator to ensure you are not required to constantly monitor the price. Funds will deposit back to your account after closing and you can withdraw or take a new position.
Why Trade Tokenised DAX 30 Index with Currency.com
DAX 30 trading at Currency.com tokenised securities exchange has a number of advantages. Tokenised securities are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
- One-stop crypto trading platform
Trade DAX 30 with Bitcoin or Ethereum. Benefit from the stock's price movements without turning your crypto assets into fiat.
Trade tokenised shares with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can access the world's top markets, like DAX 30, with up to 1:100 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
We have a scalable and low latency order management system, which can execute 50 million trades per second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.