What is the DAX 40 index?
The Dax30 was established on December 30, 1987, starting with a base value of 1,000. The DAX tracks the price performance of the 30 largest German companies in terms of trading volume and market capitalization. DAX is an acronym for Deutscher Aktienindex and means the German Stock Index in German.
On November 24, 2020, the index number changed by adding ten more of the country’s largest companies and became 0DAX 4, and this increase in volume was expected to improve the quality of the index while providing a broader representation of Germany’s largest companies, and thus the overall economy.
As the increase in the components of the DAX Index also means that traders with positions in the index will benefit from greater diversification in their investment portfolio and is an essential part of an effective risk management strategy, this greater level of diversification reduces the ability of individual companies to influence the overall value of the index.
In addition, the new companies have lower market capitalization than the previous companies of the DAX, which means that the index has greater potential for growth in the future than before.
The Dax 40 index represents the market value of a group of the largest companies in Germany, such as BMW – Adidas – Siemens – Deutsche Bank in terms of turnover.
The Dax40 index also includes other companies such as banks, clothing manufacturers, pharmaceuticals, medical supplies, chemicals, and others.
Investors can trade on the TNFX DAX, with the symbol GER30, with extremely low and competitive spreads and very low spreads. You can start by:
Create your real account with TNFX.
Log in to your real account on the platform.
Start investing in the DAX 40 Index.