Germany GER30 Index
GER 30 represents Germany's Market Index of the top Blue Chips Stocks. This Index represents the Top 30 Most Liquid and Traded Stocks which trade on the Frankfurt Stocks Market. Because Germany is the biggest economy in EuroZone, GER 30 is one of the most liked Stock Index traded by online traders.
Just like currencies, Germany GER30 also has got a chart representation & the chart can be traded and analyzed by traders. Traders can place a buy or sell order and trade this stock index using standard lots.
Germany GER30 Chart
Germany GER30 chart is displayed & shown & displayed above. On the example shown above this trading instrument is referred to as as GER30CASH. As a trader you want to find a broker that provides Germany GER30 chart so that as you as a trader can start to trade it. The example Which is displayed above is that of Germany GER30 on MT4 Forex Platform Software.
Other Info about Germany GER30 Index
Official Index Symbol - GER30:IND or GGER30I
The 30 constituent stocks which constitute the Germany GER30 are reviewed few times every year to figure out if to change the composition or not. Stocks that aren't performing well might be replaced with other stocks that are doing well.
Strategy to Trading Germany GER30 Index
Germany GER30 is comprised of blue chip stocks that trade in Frankfurt Stock Exchange Market chosen from best performing sectors in Germany: hence a good index trade strategy to trade Germany GER30 is to trade long most of the time. This is because in general the best stocks in Frankfurt Stock Exchange will in general keep moving up and up because the firms behind these stocks are the best & most profitable firms in Germany.
Germany GER30 is also reviewed few times every year so that as if one stock isn't doing well then it's replaced with an alternative blue chip stock that's doing good. This ensures that most of the time Germany GER30 will keep heading upward.
As a trader you want to be biased and keep buying as the index moves upwards. When German economy is performing well (majority of the times it's performing good) this upward trend is more likely to be in place. A good index trade strategy would be to buy dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospects. It is because of this reason that traders begin to sell stocks of corporations that are reporting lower profits & hence stock index tracking these particular stocks will also start to move downward.
Hence, during these times, market trends are a lot more likely to be moving downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts and Details
Margin Requirement Per 1 Lot - € 85
Value per 1 Pip(Point) - € 0.1
NB: Even though general trend is in general moves upwards, as a stock index trader you've got to factor in daily market volatility, on some days the index might move in a range or even pull-back, market pullbackretracement might also be significant some times & therefore as a trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About equity management principles in stock index topics: What's money indices management and trading equity management strategies.
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