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Indices
Trade the major indices from the global markets
What are Indices?
Trading CFDs on Indices has gained tremendous popularity over recent years as a way to trade different market segments and diversify trading portfolios.
Indices refer to particular market segments, made up of multiple securities. For example, the DAX-30 tracks the performance of the top-30 companies by market capitalization listed on the Dax (Deutscher Aktien Index - German Stock Index) Stock Exchange in Frankfurt, Germany.
Speculating on the price performance of these 30 companies would be virtually impossible on a stock by stock basis as it would involve holding positions in each one of these companies.
One way of speculating on their performance is by investing in the index. A position in the DAX-30 would fluctuate according to the performance of the individual stocks and as the value of the shares increased, so would the value of the position.
How to trade Indices
Indices trading with TradeGM involves trading CFDs on the index in question. For example, trading the DAX-30 would involve buying and selling CFDs in the index.
If we believed the performance of the companies making up the DAX-30 would result in the price of the index rising, we would open a Buy position and realize our profit on the difference in price when we close the position.
Conversely, if we believed the performance of the companies making up the DAX-30 would result in the price of the index falling, we would open a Sell position and again, realize our profit on the difference in price when we close the position.
DAX-30 Index Sector Weightings
The largest sector of the DAX-30 is the Materials sector which makes up 17.16% of the index. The second and third largest sectors are Financials and Consumer Discretionary respectively.
The DAX-30 is the most closely followed equity index for the performance of the German stock market.
Materials
17.16%
Financials
16.01%
Consumer Discretionary
15.40%
Industrials
13.66%
Information Technology
13.58%
Health Care
11.36%
Communications
4.47%
Utilities
3.51%
Consumer Staples
2.53%
Real Estate
