The DAX 30 is a market index of the top 30 companies in Germany. Germany has for many years been the powerhouse of the Eurozone. Its economy is growing and flourished even when others around it have failed. This index calculates the performance of the 30 companies as measured by market capitalization and order book volume.
The Index provides options traders with the opportunity to trade a diversified set of stocks, representing a number of sectors. It is also a way to trade German productivity to a great extent. The companies listed on the DAX 30 are: Adidas, Allianz, BASF, Bayer, BMW, Commerzbank, Continental, Daimler, Deutsche Bank, Deutsche Boerse, Deutsche Lufthansa, Deutsche Post, Deutsche Postbank, Deutsche Telekom, E.On, Fresenius Medical Care, Henkel, Hypo Real Estate, Infineon Technologies, Line, MAN, Merck, METRO, Munich Re, RWE, SAP, Siemens, ThyssenKrupp, TUI and Volkswagen.
Binary options traders will look at both company performance and the performance of general German economic indicators to try and gain predictive power over how the index will move. Indices are great ways for traders to specialize in a geographically collected set of assets. The DAX 30, due to the diversification of the index across a number of stocks, provides a better level of stability then trading in single stocks. Market indices can also provide an entry route into specializing in particular stocks and researching individual companies.
The Eurozone has been struggling for several years now and Germany has been drawn into the struggle. Traders will look for Eurozone trends that impact strongly on German stocks. Traders try to understand the impact that different economic indicators coming from Germany have on companies within the DAX 30 and how this will in turn effect the overall index price. It is a complex task to unravel the complexities of a market index so many traders rely heavily on their technical analysis in their final trade decisions.