Why Day Trade the DAX When There Are Alternatives?

You may be wondering: Why day trade the DAX when you could make much more profits by accessing other programs? For Americans this is the equivalent of the Dow. It is comprised of the 30 largest companies in Germany which are assessed for capitalization and then weighted to give investors an indicator of how stable their money is going to be if they join.

The Prime Standard is the template for the Frankfurt Stock Exchange. Book volume and market capitalization represent the best measure of commercial competency. An electronic trading system known as XETRA is responsible for generating prices. Why day trade the DAX formula? It is based on performance over a given total return. The assumption is that cash distribution and dividends are invested into the index.

A pathway to the European Union markets 
Germany is by far the most dominant economy within the EU thanks to its remarkably resilient manufacturing base. As a word of warning do not try to utilize the Dow Jones lot statistics because they are different in Europe. You could end up with significant losses. It is also advisable to sign up for the Eurex data feed which will cost you in the region of $9.00 per month.

Why day trade the DAX on a consistent basis? It gives you fairly good returns and it is operated from a country with proven economic stability since World War II. The symbol for the exchange is FDAX. Under the contract value one point is equivalent to twenty five Euros. The EURUSD exchange rate hovers between 1.25 and 1.50 depending on the metrics.

That means that each point will be equivalent to about $34.00. The incremental rises are staggered at 0.5 of a point or 12.50 Euros. Each tick is equivalent to $16.90 on average. Why day trade the DAX contract months? They offer variety since they run on YM and ES. That means that you can run through December, March, June and September. The trading hours are between 12.50 am and 3.00 pm Central Time.

Critical information about the exchange 
It must be noted that this is a gigantic contract which is worth about $225,000. This is greater than emini which comes in at $72,000. The S&P is slightly higher at $369,000. Why day trade the DAX on a daily basis? You require an overnight margin of 12,900 Euros which is about $17,415. On the other hand the intraday margin lies between $2,000 and $5,000.

A low margin on the DAX means that you are more susceptible to risk factors. The combination of liquidity and volatility can be toxic if you have not taken the time to deal with it. Why day trade the DAX? You should go for this option because it offers relative stability over the long run.