What is the DAX 30 Index?
The DAX formerly the Deutscher Aktien Index, is a stock index that represents 40 blue-chip German companies that trade on the Frankfurt Exchange. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume, and therefore the DAX is a prominent benchmark for German and European market performance. Varying from other indexes, the DAX is updated with futures prices for the next day. The Dax lists major European companies and among their top performers are Airbus, Allianz and Adidas.
Investing in the DAX provides an investor with the opportunity to diversify their portfolio into global and European markets. If an individual is heavily invested in tech stocks such as the Nasdaq indices, the German DAX gives investors exposure to automakers, pharmaceutical companies, heavy industrial companies, and financial stocks.
DAX 30 Index Performance
Geopolitical crises in 2018 caused German and global shares to drop, and unresolved trade wars between China and the US, and Brexit was cause for much investor uncertainty. The Federal Reserve in the US raised interest rates twice, where om Europe, low interest rates remained unchanged, and the DAX lost around 18% in value.
However, the DAX was able to resist heavy losses in the years preceding 2018. German stocks were able to take advantage of loose monetary policy and low interest rated in the United States and in the Eurozone. From 2008 to 2012, investors were swayed by the European financial crisis, and so financial markets, including the DAX, lost significant value in 2008 until mid-2009, and again over the coronavirus pandemic in the second quarter of 2020.
How to Trade DAX 30 Index?
DAX trading occurs on the Frankfurt Stock Exchange. Traditionally, those looking to trade DAX 30 would purchase directly through the Frankfurt Stock Exchange or through a broker. Traders are also able to purchase derivatives based on the DAX 30 index such as CFD, options, futures or tokenised assets.
Traders using the Dzengi.com tokenised platform are able to profit from price movements by purchasing tokenised DAX 30 index securities. Tokenised securities are crypto derivatives whose value is linked to the value of a particular asset like a stock, ETF or index. The token is registered using distributed ledger technology (DLT) the same way cryptocurrency is recorded. This technology allows for transactions using crypto without the need of converting back and forth with fiat currency. Utilising this technology makes tokenised security trading efficient, inexpensive and secure. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price, which can be carefully monitorred in real time on the DAX index live chart.
Tokenised DE30 trading guide
Trading tokenised DE30 is easy and, in many ways, the process is similar to trading other types of securities. There are a few basic steps:
Step 1: visit the Dzengi.com trading platform and open an account by completing the two-factor authentication security process.
Step 2: choose how much you want to deposit into your account. It is possible to trade with either crypto or with fiat currency.
Step 3: calculate the value of the position you want to open, or you can calculate the size of the position based on your available capital and the percentage margin. For example, a position of $10,000 would require that you have $100 of available capital when you trade tokenised DE30 1 : 100 (1%).
Step 4: positions are opened using the same approach in place at other investment platforms - i.e. taking a long position if a DE30 price increase is anticipated, or shorting if there is an expected decline in the DE30 price value. The handy DE30 price chart could be used to monitor price movement.
Step 5: Dzengi.com links the open the trading positions between its clients and all unpaired buy or sell orders that are hedged with Capital.com, LMAX Digital or, if needed, with Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
Step 6: you may also consider placing a take profits order or initiate a stop loss order.
Trade tokenised DE30 with Dzengi.com
Tokenised DE30 trading at Dzengi.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
Trade tokenised DE30 with a tight market spread, and benefit from maker rebates and competitive taker fees.
Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders and mitigate any losses with negative balance protection.
Instant order execution
Dzengi.com has a scalable and low latency order management system, which can execute 50 million trades per second. It is a high-growth, crypto platform seamlessly linking the booming world of cryptocurrencies with the world of traditional financial assets. Powered by simple, slick and intuitive technology, the platform is designed to enable investors to securely buy, trade and invest in popular cryptocurrencies using both crypto and fiat currencies.
Depending on the regulatory perimeters in different countries Dzengi.com offers different products around digital assets. To help investors trade with confidence, the platform is fitted with robust risk management controls, transparent pricing and extensive financial education content.
Dzengi Com US LLC is registered with the Financial Crimes Enforcement Network as a Money Services Business. Its parent entity, Dzengi Com Limited is licensed by the Gibraltar Financial Services Commission as a Distributed Ledger Technology (DLT) Provider. The company has offices located in the US, Belarus, Gibraltar and Ukraine.