Germany GER 30 Stock Index

GER 30 represents Germany's Market Index of the top Blue Chips Stocks. This Stock Index represents Top 30 Most Liquid Stocks that trade on Frankfurt Stock Exchange Market. Because Germany is the largest economy in Euro Zone, GER30 is one of the most popular traded by 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 & trade this stock index using standard lots.

Strategies for Trading Germany GER 30 Stock Indices - Germany GER 30 Stock Index

Germany GER30 Chart

Germany GER 30 trading chart is shown and portrayed & shown 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 can start to trade it. The example That is shown above is that of Germany GER 30 on MetaTrader 4 FX and Indices Platform.

Other Information about Germany GER 30 Stock Index

Index Symbol - GDAXI

The 30 component stocks that constitute Germany GER30 are revised a few times a year to determine if to change the composition or not. Stocks that are not performing well may be replaced with other stocks that are doing well.

Strategy for Trading Germany GER 30 Stock Index

Germany GER 30 is comprised of blue chip stocks that trade in Frankfurt Bourse selected from best performing sectors in Germany: hence a good stock 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 Bourse will generally keep moving up and up because the companies behind these stocks are the best & most profitable companies in Germany.

Germany GER 30 is also revised a few times a year so that if a stock is not doing well then it is replaced with another blue chip stock that is doing good. This ensures that most of the times Germany GER 30 will keep going up.

As a trader you want to be biased and keep buying as the stock index moves upward. When German economy is doing well (most times it is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to buy the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, firms begin to report lower profits & lower business growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks will also start to move downward.

Therefore, during these times, market trends are likely to be moving downward & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts and Specifications

Margin Requirement Per 1 Lot - € 85

Value per 1Pip - € 0.1

NB: Even though general trend is generally move upward, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant at times and hence as a trader you need to time your trade entry precisely when using this trade strategy: Indices trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About indices money management rules courses: What's money management & money management methods.

Get More Lessons: