DAX (derived from the German Deutscher Aktienindex) is Germany's key stock index and one of the most influential indices in Europe. It represents almost 80% of the market capitalisation of all companies registered on the Frankfurt Stock Exchange.
The index is calculated based on the average market-cap-weighted value of the share prices of Germany's biggest 30 public companies (40 as of 20 September 2021) listed on the Frankfurt Stock Exchange. The index also takes into account income received in the form of the shares' dividends, assuming that these dividends are reinvested. As such, the index reflects the total income on capital and thus indirectly measures the overall growth of the German economy.
The index first went public on 1 July 1988 with a valuation of 1000 points. The DAX is calculated by Deutsche Börse AG.
The DAX index includes the shares of the following companies:
Deutsche Börse AG
Deutsche Lufthansa AG
Deutsche Post AG
Deutsche Telekom AG
Fresenius Medical Care
Infineon Technologies AG
The following companies are also part of the DAX as of 20/09/2021:
Siemens Healthineers AG
Sartorius AG Vz
Porsche Automobil Holding
The DAX is a high liquidity instrument that's strongly correlated with other European stock indices. It's often characterised by long-lasting trends, making it a perfect fit for patient investors. Moreover, the DAX has a strong impact on the fortunes of the single European currency, the Euro.
Over the first half of 2021, the index rose 11.8%, with an average intra-day volatility of 1.2%.
How to buy and sell the DAX
You can buy and sell DAX futures contracts on specialised exchanges, but the best way to trade it is through a broker or trading platforms, such as MetaTrader or Libertex. Trading on these platforms is convenient, leverage can be used, and you can even earn if the asset's value goes down.