Germany GER 30 Index
GER 30 represents Germany's Market Stock Index of the top Blue Chips Stocks. This Index represents Top 30 Most Liquid Stocks which trade on Frankfurt Stocks Market. Because Germany is the biggest economy in EuroZone, GER 30 is one of the most popular Stock Index traded by online traders.
Just like currencies, Germany GER 30 also has 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 GER 30 Chart
Germany GER 30 chart is shown & shown & displayed above. On the example above this instrument is referred to as as GER30CASH. As a trader you want to find a broker that provides Germany GER 30 chart so that you as a trader can start to trade it. The example Which is shown above is that one of Germany GER 30 on MT4 Forex Platform Software.
Other Info about Germany GER 30 Stock Index
Official Index Symbol - GER30:IND or GGER30I
The 30 constituent stocks which constitute the Germany GER 30 are reviewed few times every year to determine 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 GER 30 Index
Germany GER 30 is comprised of blue chip stocks that trade in Frankfurt Stock Exchange selected from best performing sectors in Germany: hence a good index trade strategy to trade Germany GER 30 is to trade long most of the times. This is because in general the best stocks in Frankfurt Stock Exchange will generally keep moving up and up because the firms behind these stocks are the best & most profitable firms in Germany.
Germany GER 30 is also reviewed few times every year so that if one stock isn't doing well then it's replaced with an alternative blue chip stock that is doing good. This ensures that most of the time Germany GER 30 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 (most times it's performing good) this upwards 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 business growth prospects. It's due to this reason that traders begin to sell stocks of corporations that arereporting lower profits & hence stock index tracking these particular stocks will also start to move downward.
Hence, during these times, market trends are 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 - € 0.1
NB: Even though general trend is generally moves upwards, as a stock index trader you have to factor in daily market volatility, on some days the index might move in a range or even pullback, market pullbackretracement might also be significant at times & therefore as a trader you need to mark-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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