What is DAX? What You Need to Know About the Most Important Index of the German Stock Exchange

Basic information you need to know about the DAX index from within 30 of the largest 30 German company shares such as Volkswagen, BMW and Adidas.

DAX is one of the largest world stock market indices you can often see in business news. Because DAX represents the economic outlook of both Germany and Europe as a whole.

Monitoring markets is always one of the most important first strategies of any investor. Therefore, both market experts and investors are closely monitoring the DAX index.

 
Here is the basic information you need to know before pursuing or investing in the DAX index, which is the economic indicator of Germany and Europe.

What is the DAX Index?

DAX is a market index of the 30 largest publicly traded companies in Germany. DAX is Germany’s main stock index.

Watching the performance of the 30 largest German companies whose shares are traded on the Frankfurt Stock Exchange, DAX is used as an indicator of the German stock market as well as the general economic outlook of Germany and Europe.

For the first time in 1987 it created the DAX index, which is a very simple words, in Turkey Bist 30, represents the German equivalent of the Dow 30 FT 30 index in Britain or the United States.

With DAX, it is possible to easily enter the German market, benefit from the largest economy in Europe and thus take advantage of opportunities in the domestic and global markets. DAX index operations in Turkey can be made through intermediaries.

DAX Index Share Prices in Euro

Against the popular belief of the German currency, the prices of stocks in the DAX index are traded in euros. Therefore, it is necessary to consider this difference when monitoring and interpreting.

Since the DAX trading currency is in euros, any investor may be exposed to exchange rate fluctuation as well as taking the risk of trading in a foreign market. In this respect, it is important to know the currency risk before investing in the DAX 30 index.

Companies in the DAX Index

The DAX index consists of global companies. The companies listed in the index represent about 80 countries, and any change in the world actually affects the DAX index.

Volkswagen, BMW, Siemens, Deutsche Bank, Henkel, Allianz, Adidas and Bayer are just a few of the global companies in the DAX index.

The DAX index is mostly composed of companies in the automobile and banking sectors. Therefore, we cannot be mistaken to say that the DAX index is under the dominance of automobile and banking companies.

BMW, Daimler, Volkswagen etc. All major German car manufacturers such as Deutsche Bank and even a clothing company Adidas are part of the DAX index.

We can say that this index will be an ideal choice for any investor, especially those who want to participate in a market that is heavily affected by manufacturing companies, including those who want to take advantage of opportunities in the global market as well as in domestic markets.