DAX Stock Index: Definition and Member Companies

The DAX stock index is a stock index that represents 40 of the largest and most liquid German companies that trade on the Frankfurt Stock Exchange. DAX member companies represent roughly 80% of the aggregate market capitalization that trades on the Frankfurt Exchange. The index was historically comprised of 30 companies but was expanded to 40 in 2021. DAX is short for Deutscher Aktien Index, one of the most popular indices in Europe. This index measures the performance of the Frankfurt Stock Exchange’s 30 largest and most liquid companies. Get an easy-to-use platform, expert trade ideas and friendly support as standard.

Largest holdings

The DAX was launched by the Frankfurt Stock Exchange in July 1988, with a base value of 1000. The index was created as a continuation of the Börsen-Zeitung, an index started in 1959. One of its first big milestones was the 60% increase in the run-up to the destruction of the Berlin Wall in 1989. But, with tensions rising, the price began to fall again – losing 13% in seven weeks.Despite the happenings in Germany, the index posted strong growth in its first few years, surpassing 2000 points in 1993, and 5000 in 1998.

If your aggregate position premarket prep stock of the day is larger than Tier 1, your margin requirement will not be reduced by non-guaranteed stops.

The DAX is a capitalisation-weighted index, meaning that companies with a higher market cap will have a bigger influence on its price. It’s calculated using a free-float methodology, which means it only takes the number of readily available shares into account – ignoring those that can’t be bought and sold (such as those held by government). To avoid domination, a single stock cannot represent more than 10% of the index. The DAX is a stock market index that measures the performance of Germany’s 40 largest companies. The index’s components represent almost 80% of the Frankfurt Stock Exchange’s aggregate market capitalization. It is composed of the 40 largest companies in Germany that trade on the Frankfurt Stock Exchange.

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. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.

Global stocks and US futures fall after Snap’s profit warning fuels growth fears

Softer guidance from mega-cap tech stocks could send stock markets back to square one, one analyst said. The vast majority of shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a high adoption rate for the stocks of the 40 DAX members. We are thrilled to introduce our brand-new US options dont worry about china selling us bonds and futures account, brought to you in partnership with our friends at tastytrade.

You should familiarise yourself with these risks before trading on margin. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.

1. Home to major stocks such as BMW, Deutsche Bank and Siemens, the DAX is one of the most popular indices in the world.
2. In order to be included in the DAX, a company must fulfill certain criteria.
3. The DAX is capitalisation weighted, which means that the stocks with a higher market capitalisation will find a greater influence on the overall index.
4. The companies listed in the DAX are multinational corporations that influence both Germany’s economy and the global economy at large.

​​Best pharma stocks to watch​

You can trade the Germany 40 with us from 11.02pm on Sunday to 10pm on Friday (UK time). We also offer a Weekend Germany 40 market, which is available from 8am on Saturday to 10.40pm on Sunday (UK time). Positions open at 10.40pm on a Sunday will roll over into weekday positions when the market resumes at 11.02pm on Sunday (UK time). The percentage of IG client accounts with positions in this market that are currently long or short.

​​Dow steady but DAX and Hang Seng keep falling​

Like most stock market indices, it is considered a bellwether of the German economy, which is why analysts and investors look closely at how it performs. But, when it drops, it may mean that investors should prepare for a rough economic patch. Unlike most indices, the DAX is updated with futures prices for the next day, even after the main stock exchange has closed. Changes are made on regular review dates, but index members can be removed at any time if they no longer rank in the top 45 largest companies or added if they break the top 25.

Prices are calculated every second, and companies are added or removed quarterly on the basis of their market cap and the size of their order book. Derivatives are popular because they enable you to trade on both rising and falling index prices, as you don’t take ownership of any of the underlying stocks. You’ll ‘buy’ if you think the price of the index will rise and ‘sell’ if you think it will fall.

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 dot-com crash had an adverse effect on the index, pushing the price to below 2500 by 2003. After the market settled, it managed to get back above the 7500 level once more, before the 2008 economic meltdown caused it to lose more than half its value. However, the Germany 40 proved to be resilient and made a comeback once again, breaking the 12,000 level in 2015. 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.

Spread bet and trade CFDs with IG to take advantage of both rising and falling prices. Alternatively, buy and sell shares and ETFs with our investment offering. The DAX is a capitalisation weighted index made up of 30 of the biggest, ‎trade360 on the app store most liquid constituents of the Frankfurt Stock Exchange (FSE). The companies that make up the index represent about 75% of the total market cap of the FSE.