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What Is DAX 30?

Adam Lienhard
What Is DAX 30?

The DAX 30, also known as the German stock market index, is a collection of 30 of the largest companies listed on the Frankfurt Stock Exchange, which is one of the largest in the world. It was developed to track the performance of major German companies that have a significant impact on the German economy. These companies come from various sectors such as industry, finance, technology, and services.

How is it calculated?

The DAX 30 index is calculated by Deutsche Börse AG, which operates the Frankfurt Stock Exchange. 

The index is weighted based on the total market value of the companies in it. Each company’s weight in the index is determined by its market value as a percentage of the total market value of all 30 companies. Additionally, the market value of each company is calculated without taking into account restricted shares. Larger market capitalization companies have a greater impact on the index’s performance. 

Companies whose market value falls outside the top 45 are removed from the index, while those whose value falls within the top 25 are considered for inclusion.

Top 10 companies in the DAX 30 index

The DAX 30 index is influenced by the performance of several major companies included in it. Here are some prominent companies that have a significant impact on the index’s performance:

  1. SAP: A software and IT services company.
  2. Volkswagen: An automotive and transportation company.
  3. Bayer: A chemicals and pharmaceutical company.
  4. Siemens: A multinational engineering company.
  5. BMW: An automotive company.
  6. Daimler: An automotive and truck manufacturing company.
  7. BASF: A chemicals company.
  8. Adidas: A sportswear and equipment manufacturing company.
  9. Deutsche Bank: A commercial and investment bank.
  10. Allianz: A multinational insurance company.

How to trade on Dax 30?

Use charts for the DAX 30 index to analyze patterns, trends, and support and resistance levels. You can use daily, weekly, or monthly charts to analyze performance in the short and long term.

Use technical indicators such as Moving Averages, Relative Strength Index (RSI), Linear Regression, and Moving Average Convergence Divergence (MACD) to identify buying and selling signals and confirm them.

Stay updated on important news and economic events that may impact the performance of the DAX 30 index and the companies listed within it. Market movements often coincide with significant economic and political news.

Combine technical analysis with fundamental analysis to make trading decisions. Fundamental news, such as earnings reports and economic developments, can influence the performance of the index and the listed companies.

Before trading, establish your risk management strategy. Determine entry and exit levels, set stop-loss and take-profit orders, and define the amount of capital you’re willing to risk.

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