Germany GER 30 Stock Index
GER 30 represents Germany's Market Index of the top Blue Chip Stocks. This Stock Index represents Top 30 Most Liquid Stocks trade on Frankfurt Stock Market. Because Germany is the biggest economy in EuroZone, GER 30 is one of the most popular traded by traders.
Just like currencies, Germany GER 30 also has a chart representation and the chart can be traded and analyzed by traders. Traders can place a buy or sell order & trade this stock index using standard lots.
The Germany GER 30 Chart
The Germany GER 30 trade chart is displayed & shown & displayed above. On example above this instrument is named as GER30CASH. As a trader you want to find a broker that provides Germany GER 30 chart so that you as a trader can begin to trade it. Example displayed above is of Germany GER 30 on MetaTrader 4 Forex and Platform.
Other Information about Germany GER 30 Stock Index
Official Symbol - GDAXI
The 30 components stocks that constitute the Germany GER 30 are reviewed few times each year to determine 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 GER 30 Index
Germany GER 30 is comprised of blue chip stocks which trade in Frankfurt Stock Exchange Market selected from top performing sectors in Germany; therefore a good indices 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 Stocks Exchange Market will generally keep moving up & up because the corporations behind these stocks are the best & most profitable corporations in Germany.
The Germany GER 30 is also revised few times each year so that if a stock isn't doing well then it is replaced with another blue chip stock that's doing good. This ensures most of the time Germany GER30 will keep going upwards.
As a trader you want to be biased and keep buying as the index moves upwards. When German economy is performing good (most times it's performing good) this upwards 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 business growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits and therefore 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 Specifications
Margin Requirement per 1 Lot - € 85
Value per 1Pip - € 0.1
NB: Even though general trend is generally moves upwards, as a stock indices trader you have to factor in daily market volatility, on some days the index might oscillate or even retrace, market pull back may also be substantial at times and hence as a trader you need to time your trade entry precisely 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.
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