Germany GER30 Index
GER 30 represents Germany's Market Index of the top Blue Chip Stocks. This Index represents the Top 30 Most Liquid and Traded Stocks which trade on Frankfurt Stock Market. Because Germany is the biggest economy in EuroZone, GER 30 is one of the most liked stock market index traded by the traders.
Just like currencies, Germany GER30 also has got a chart representation and the chart can be traded and transacted and analyzed by traders. Traders can place a buy or sell order & trade this stock index using standard lots.
The Germany GER30 Chart
The Germany GER30 trade chart is displayed and illustrated & shown & displayed above. On illustration put on display above this trading instrument is named as GER30CASH. As a trader you want to find a broker that provides Germany GER30 chart so that as you as a trader can begin to trade it. Example displayed above is of Germany GER30 on MetaTrader 4 Forex and Platform.
Other Information about Germany GER30 Index
Official Symbol - GDAXI
The 30 components stocks which constitute the Germany GER30 are reviewed few times each year to figure out if to change this composition or not. Stocks which are not performing well might be replaced with other stocks which are doing well.
Strategy of Trading Germany GER30 Index
Germany GER30 is comprised of blue chip stocks which trade in Frankfurt Stock Exchange Market chosen and selected from top performing sectors in Germany; therefore a good indices trade strategy to trade Germany GER30 is to trade long most of the times. This is because in general the best stocks in Frankfurt Stocks Exchange Market will in general keep moving up & up because the corporations behind these stocks are the best & most profitable firms in Germany.
The Germany GER30 is also revised few times each year so that as if a stock isn't doing well then it is replaced with another blue chip stock that's doing good. This ensures most times Germany GER30 will keep going and moving upwards.
As a trader you want to be biased and keep buying as the index moves upwards. When German economy is doing good (most times it's performing good) this upward trend is more likely to be in-favor. A good indices trade strategy would be to buy dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits & lower growth prospects. It is due to this reason that traders begin to sell stocks of companies which are reporting & posting lower profits and therefore 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 as a trader are trading.
Contracts and Specifications
Margin Requirement per 1 Lot - € 85
Value per 1 Pip(Point) - € 0.1
NB: Even though general and overall trend is in general moves upwards, as a stock indices trader you've got to factor in daily market price volatility, on some days the index might oscillate or even retrace, market pull back may also be substantial sometimes and hence as a trader you need to time your entry strictly using this strategy: trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About index equity management rules courses: What is stock index equity management and equity management strategies.
More Topics:
- DJI30 Index Trade Strategies
- What's Hang Seng 50 Spread? Hang Seng 50 Spread
- Charts Toolbar Menu & How to Customize it on MetaTrader 4 Trading Platform
- Forex Index Trade FTSEMIB in Forex
- How to Trade Indices with Bollinger Band Technical Indicator Stock Indices Strategy
- How Can I Use MT5 Fibo Retracement Levels on MetaTrader 5 Software?
- Improve Your Profitability By Not Trading Indices at These Times
- Forex Index Trading Nikkei in Forex
- How Can You Add NETH25 in MT5 Software?
- How to Open Live Indices Account: How Real Indices Account Looks Like