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 Stock Exchange Market. Because Germany is the largest economy in Euro Zone, GER30 is one of the most liked traded and transacted by the 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 & trade this stock index using standard lots.
Germany GER30 Chart
Germany GER30 trading chart is displayed & portrayed 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 you as a trader can start to trade it. The example That is displayed above is that of Germany GER30 on MetaTrader 4 FX & Stock Indices Platform.
Other Information about Germany GER30 Index
Index Symbol - GDAXI30
The 30 component stocks which constitute Germany GER30 are revised a few times a year to figure out if to change the composition or not. Stocks which are not performing well may be replaced with other stocks that are doing well.
Strategy for Trading/Transacting Germany GER30 Index
Germany GER30 is comprised of blue chip stocks that trade in Frankfurt Stock Exchange Market chosen and selected from best performing sectors in Germany: hence a good stock index trade strategy to trade Germany GER30 is to trade long most of the times. This is because in general the best stocks in Frankfurt Stock Exchange Market will in general keep moving up and up because the companies behind these stocks are the best & most profitable companies in Germany.
Germany GER30 is also revised a few times a 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 that most of the times Germany GER30 will keep going and moving up.
As a trader you want to be biased and keep buying as the stock index moves upward. When German economy is doing well (majority of the times it is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to buy market dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits & lower 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 1 Pip(Point) - € 0.1
NB: Even though general trend is in general move upward, as a indices trader you've got 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 substantial some times and hence as a trader you need to time your entry precisely when using this trade strategy: Stock Index 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.
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