DAX

Written by Mike Druttman

Reviewed by Nadav Zelver

Starting Point

The DAX (Deutscher Aktien Index), also referred to as GER40, is an esteemed stock index showcasing top companies from the Frankfurt Stock Exchange (FSE). It's a highly sought-after asset on the eToro platform, particularly appealing to newcomers. If you're keen on exploring the intricacies of investing in this index through eToro, this guide is for you. I'll share my personal experiences and insights, offering you a valuable perspective on how to navigate and invest in this fascinating asset. So, let's dive in.

Trading DAX via CFD

When trading the DAX index on eToro, you're dealing with CFDs (Contracts for Difference) rather than directly engaging with the stock exchange. The allure of CFD trading lies in its speculative nature, allowing traders to forecast and capitalize on the movements of the indices market. CFDs offer the advantage of profiting from price changes without owning the actual asset. The value of a CFD contract hinges on the price variation between when you enter and exit a trade. Skillfully executed trades in CFDs can yield a Return on Investment (ROI) regardless of market direction. Crypto CFDs/ Leverage trading is restricted for users under FCA.  

Why I Prefer Trading DAX on eToro?

Having traded the DAX index on eToro numerous times, I've identified several key benefits of the platform:

• User-Friendly Interface: Navigating and trading on eToro is straightforward and intuitive.
• Flexible Trading Schedule: The platform allows setting pre-orders, even when the index market is closed.
• Leverage Options: Leverage enables you to engage in larger trades with a smaller capital outlay. Note that leverage limits vary based on your location. 

Exploring the DAX Asset Page on eToro

When you visit the DAX asset page on eToro, you'll land on the Overview section, the default area showcasing various elements:

• Graph: This displays the index's performance. Note that this is a basic graph, and a more detailed version is available in another tab.
• About: Brief information about the DAX index.
• Latest News: Up-to-date news related to DAX, provided by CityFALCON.
• People Also Bought: Highlights other eToro indices popular among traders.
• Copy Investors: Features top traders investing in DAX. Clicking the "Copy" button next to a trader takes you directly to the copy trading window.
• Discussions: Engage in posts and conversations about DAX. Filter options allow you to view top discussions or all discussions. It's interactive like Facebook or Twitter, enabling likes, comments, and shares.

Integrated Trading Tools on eToro

eToro's integrated interface means you don’t have to switch between apps or screens. Here are some tools I found useful:

• Chart: An advanced live chart for DAX, customizable from 1-minute to 1-week gaps.
• News: Shows the latest DAX news from CityFALCON, including sentiment analysis indicating positive, negative, or neutral moods. Below this is the Sentiment Trends section, quantifying news sentiment over a 30-day period.

Trading DAX on eToro

To trade DAX on eToro, search for the asset, select "BUY" or "SELL," input your investment amount, set trading preferences, and execute the trade.

Maximizing Your eToro Experience with DAX

In summary, these insights should equip you to invest in the DAX index on eToro effectively. These tips apply to both the web-based platform and the mobile app. Remember to apply these strategies thoughtfully when trading and enjoy your journey on eToro!