Trading the DAX
What Is DAX Trading?
Started in 1984, the DAX Index is the most commonly cited benchmark for measuring the returns posted by stocks on the Frankfurt Stock Exchange. The index is comprised of the 30 largest and most liquid issues traded on the exchange. It is a performance-based index, which means that any dividends, bonuses, windfalls and other events are rolled into the index's final calculation.
DAX provides an appropriate instrument to track the growth of the German stock market by annual re-evaluation. However, the index composition can also change during the year under special conditions (mergers and acquisitions, de-listings, closures, etc…).
DAX Index Trading Software
Ask any DAX trader, fund producer or general investor what trading tools or types of financial analysis they use and you're probably going to hear a list of different technologies and methods. However, having the right tool for the job is critical. Trading software can be used to augment an existing approach by supplying an inter-market perspective. The key to a DAX Index trading system is its ability to forecast moving averages. One of the better DAX Index trading software products is VantagePoint trading software that will help “see” what is likely to happen in the index market before other traders (using only single-market analysis) catch wind of it.