DAX 40 Index

The DAX, also known as the Deutscher Aktienindex (German stock index), is a blue-chip stock market index that represents the performance of the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange (Börse Frankfurt) in Germany.

Companies are selected and weighted mainly according to their free-float market capitalisation, meaning larger companies generally have a greater influence on the index.

The DAX includes businesses from industries such as technology, automotive, industrials, financial services, healthcare and consumer goods, making it a widely followed benchmark for the German equity market.

The index was launched in 1988 with 30 constituents and expanded from 30 to 40 companies in September 2021.

GER40 CFD trading lets you trade movements in the DAX 40 without buying shares in the companies that make up the index.

With a GER40 CFD, you can open a long position if you expect the index to rise or a short position if you think it will fall.

CFDs are traded using margin, so you only need to put up a portion of the position's full value. Leverage increases your market exposure and can magnify both profits and losses.

Axi offers GER40 as a cash CFD, while traders can also access DAX 40 exposure through a futures CFD

Both products let you trade movements in the DAX 40 without owning the underlying shares. The main differences are how the contracts are structured and how positions held over time are treated.

The DAX was launched on 1 July 1988 and has since become the main benchmark for Germany's stock market.

Over its history, the index has moved through major economic and market events including German reunification, the dot-com crash, the global financial crisis, the European sovereign debt crisis and the sharp market sell-off in 2020.

In September 2021, the index expanded from 30 to 40 constituents, broadening its representation of large companies listed in Germany.

The DAX is commonly quoted as a performance index, which means dividends paid by its constituents are reinvested in the index calculation.

Past performance is not a reliable indicator of future results.

The GER40 moves with the share prices of DAX constituents, but several wider factors can influence the index.

Key factors include:

• Company earnings: Results and forecasts from larger DAX companies can have a significant impact on the index.
• European Central Bank policy: Changes in interest rates and expectations for monetary policy can affect company valuations and market sentiment.
• German economic data: GDP, inflation, industrial production, manufacturing surveys and employment data can influence expectations for the German economy.
• The euro: Currency movements can affect internationally focused DAX companies, particularly exporters.
• Global trade: Many DAX companies generate a significant share of their revenue outside Germany, making global demand and trade conditions important.
• Energy prices: Changes in oil, gas and electricity costs can affect German manufacturers and other energy-intensive businesses.
• Global equity markets: Movements in major US, European and Asian indices can influence sentiment toward German shares.
• Geopolitical developments: Trade disputes, conflicts and political uncertainty can increase volatility.