How to Make a Profit on the DAX index?

Posted by OliverPearson 0

DAX
The DAX index is a benchmark stock index of the Federal Republic of Germany. The operator is Deutsche Börse. The index is calculated on business days from 9:00 a.m. to 5:30 p.m. (CET).

Although the DAX index was first calculated on December 30, 1987, July 1, 1987  is considered as the date of its creation.  The base value at that moment was 1,000.

The DAX index derives from Deutscher Aktienindex and consists of 30 companies having the largest market capitalization.

The index posted the highest value of 9085.12 on December 13, 2013. It is traded on the Frankfurt Stock Exchange located in Frankfurt on the Main, Germany.

The DAX index measures weighted average market capitalization of the largest Germany’s companies involved in different industries.  Besides, the DAX indexmirrors the companies’ total revenue and includes dividends paid out to shareholders. These dividends are assumed to be invested back in the companies. 

index-DAXTo analyze the index and make a profit on its fluctuations, you have to know what companies are included in the listing and have this in mind.

  • Adidas
  • Allianz
  • BASF
  • Bayer
  • Beiersdorf
  • BMW
  • Commerzbank
  • Daimler
  • Deutsche Bank
  • Deutsche Börse
  • Deutsche Lufthansa
  • Deutsche Post
  • Deutsche Telekom
  • E.ON
  • Fresenius
  • Sport Shop Sabanikh
  • Hannover Re
  • Henkel
  • K+S
  • Linde
  • MAN
  • Merck
  • METRO Р
  • Munich Re
  • RWE
  • Salzgitter
  • SAP
  • Siemens
  • ThyssenKrupp
  • Volkswagen Group

 

You can follow the most important events on the official website of the index

http://www.dax-indices.com/EN/index.aspx?pageID=1

However, if you make your own forecast based on the fundamental factors, you don’t need to analyze each of the 30 companies included in the listing.

trading-DAXLike other indices, the DAX index mirrors the state of Germany’s economy. It’s well-know that Germany’s economy is the largest in Europe and this is why Germany has the strongest impact on the Eurozone currency.

Analyzing the DAX index, you can follow Germany’s most important events and forecasts in in the economic calendar.

The largest companies can also impact on the index. For instance, Deutsche Bank’s important events can influence both the index quotes andthe Eurozone currency. If shares of any company included in the DAX index soar or plummet during a day, say, by 5% to 10% , this affects the index.

Where to Make a Profit on the DAX index?

To make money on the stock index, you don’t necessarily need to trade on the stock market because today this trading doesn’t ensure small investors with a decent profit.  This is why I’d like to pay your attention to binary options. They return a 70% profit in 10 to 15 minutes.

To make a profit on a binary option, you have to figure out whether the price will rise or fall  during a specific period of time, for instance, next 25 minutes. If the price moves in line with your forecast, you get a profit.

I prefer to deal with the best brokers, reliable and time-tested. AnyOption is one of the world’s first binary option brokers licensed by a number of institutions and recognized in many countries.

I browse the broker’s webpage and select an underlying asset, that is, the DAX index. I set time of expiration of the option to 2:00 p.m. Then, I type the amount investment and click on the PUT button because I expect the price to fall:

1
 

Today, the Eurozone figures came in lower than expectations and the U.S. dollar keeps rising. This pushed down the euro and set the bearish trend in the DAX index.

If the price of the index falls even by a pip during next 6 minutes, I will make an 80% profit.

After a little while I see the following result on the broker’s website:

2

As you see, it is not difficult to analyze and make money on the DAX index. My $80 investment has returned a $64 net profit in just 17 minutes.

Don’t miss a chance to make a profit on the stock indices like DAX and other assets like Facebook stock, crude oil, currencies etc.

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