DAX 40 Index: Complete Guide to Trading the DAX

The DAX 40 is the main stock index of the German stock exchange and one of the most closely watched in Europe. Despite its strong performance, it is still little known to the general public. This is the index we are going to look at today.

DAX 40 (GDAXI) Live Quote and Price

To go further, also read our guides “Best Stock Market App” and “Best Portfolio Management Software“. Also worth following: Porsche stock.

DAX 40 Index Stock Performance

DAX 40 (GDAXI) Price Compared with Other Indices

Trading the DAX 40 Index: Is It Profitable?

Yes, the GER 40 index appears to be quite profitable. DAX 40 trading is in high demand among traders because of its strong profitability and high volatility. The index is more volatile and more profitable than major indices such as the CAC 40. This is mainly due to its history, its development and the companies that make it up.

Every trading day, you can open positions on trading platforms, and with good analysis you can already make your first gains.

DAX 40: What Is the Index’s Track Record?

Created in 1987 with a base of 1,000 points, the German stock exchange’s main index has grown remarkably since then. It is the oldest index on the European market; several other German indices have joined it and made it one of the leading stock indices in the world.

In 1993, the DAX 40 stood at 2,000, double its base value. From 1993 to 2000, the DAX 40 went from 2,000 points to 7,500. Between 2003 and 2007, its value climbed to a peak of 8,100 points before falling back to 2,500 points. In 2026, the index is trading above 16,000 points.

The DAX 40 is a fairly volatile stock index that offers many investment opportunities. However, it is important to carefully assess the risk attached to every position you open.

DAX 40: What Companies Are in the DAX 40?

The DAX 40 is made up of 40 large German companies and multinationals, including Vonovia. Here is the list of DAX companies.

Adidas	Allianz	BASF	Airbus
Bayer	Beiersdorf	BMW	Brenntag
Commerzbank	Continental	Daimler	HelloFresh
Deutsche Bank	Deutsche Börse	Deutsche Lufthansa	Porsche
Deutsche Post	Deutsche Telekom	E.ON	Puma
Fresenius	Fresenius Medical Care	HeidelbergCement	Sartorius
Henkel	Infineon	Linde	Siemens Healthineers
Munich Re	ProSiebenSat.1	RWE	Symrise
SAP	Siemens	Thyssenkrupp	Qiagen
Merck	Volkswagen Group	Vonovia	Zalando

DAX 40 Index Analysis: DAX 40 Forecast for the Coming Years

All the conditions are in place for the DAX 40 to grow. Currently focused on chemicals and industry, Germany is the healthiest country in budgetary terms. It has the largest recovery plan on the continent and is the only country benefiting from the recovery in China. Over the coming years, Germany could beat its records by up to 30%, especially as the DAX now has 40 companies. Long-term buying is therefore strongly encouraged.

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What Is the DAX 40? DAX Stock Index Definition

The DAX 40 is the main stock index of the Frankfurt Stock Exchange and the main index of the German financial market. The acronym stands for Deutscher Aktien IndeX, and the exchange is the second-largest financial center in the world. It is an extremely liquid market with very volatile assets, offering great trading opportunities along with a fairly high level of risk. Here is our full article on the DAX 40 definition.

What Is a GER 40 Index CFD?

Also known as a contract for difference, the CFD is one of the most traded financial instruments in the world. It is a contract in which changes in the value of an underlying asset are traded.

It is a financial product that can be derived from any financial instrument available on the markets. CFDs are therefore a very popular way to trade the DAX 40. Simply put, a DAX 40 CFD is a financial product derived from changes in the value of the DAX.

With DAX CFDs, you don’t need to own shares in the DAX to profit from it. In fact, it is one of the main ways to invest in the index after stocks.

DAX 40 Index: Trade the German Stock Market

The DAX 40 is the main stock index of the Frankfurt Stock Exchange. It is an important index made up of 40 large German companies and multinationals. It is no exaggeration to say this index reflects Europe’s economic health. It represents the largest companies by market capitalization listed on the Frankfurt Stock Exchange.

The DAX 40 grew tremendously in the early years of its existence, rising from 2,000 to 7,500 points between 1993 and 2000. Over time, other indices joined the DAX, such as the MDAX and the TecDAX, which represent respectively the 50 largest German companies after those in the DAX and the 40 largest German technology companies.

How Does the DAX 40 Work?

You cannot buy the DAX 40 the way you buy stocks, because it is only a numerical representation of data from the companies listed in it. To trade the DAX 40, the best options remain futures contracts and CFDs.

DAX 40 CFDs are financial products derived from changes in the DAX 40 price on the market. This trading system lets you trade exchange-listed instruments without actually owning them. CFD trading is one of the most popular and widespread systems.

DAX 40 for Beginners

We hear about the DAX 40 as soon as we enter the financial markets, both because of its importance and because of the trading opportunities it offers. For beginners, it is not always obvious, as they still have everything to learn. That is why we will cover the topic in simpler terms.

Simply put, the DAX 40 is an index representing the 40 largest German companies listed on the stock exchange. It cannot be bought like stocks, so the best way to invest in it is through CFDs. With advances in technology, it doesn’t take much to trade the DAX 40 anymore.

DAX 40 Index Quote: German Stock Exchange

Unlike indices such as the CAC 40, the DAX 40 is calculated by reinvesting dividends and other payouts and bonuses paid to shareholders. The stock market quote is decisive on any market for goods, services or financial assets. It is the moment when the buy and sell prices are set on the market, between sellers on the one hand and buyers on the other.

Many markets now have live quote systems that let you see prices and their changes in real time. To see the DAX 40 index quote, you can open an account with a broker that offers the index.

What Is a Pip on the DAX 40 Index?

A pip is the change or difference between the index point, also called the starting price, and the current price. For index CFDs, a pip can be equal to 1.0 point. For a DAX CFD whose index point is 1.6574 when the position is opened and 1.6589 when it is closed, the position is said to have moved 15 points.

Example of Pips on the DAX 40 Index

You trade DAX CFDs with AvaTrade and open a position at 1.5625. After 5 hours, you notice the price is at 1.5867. If you had opened a buy position, you would make a margin gain of 1.5867 – 1.5625 = 242 pips. If your position was a sell, however, you would make a margin loss of 242 pips. These gains are then converted into currency based on your lot size and leverage.

What Is a Lot on the DAX 40 Index?

Unlike forex CFDs, index lots are not standardized, so the lot depends on the asset’s market value. When the DAX is at 15,000 points, a lot is worth €15,000, a mini lot €1,500 and a micro lot 150.

The lot on DAX CFDs is the current market value of the DAX 40.

Key Information on the DAX 40

German Stock Exchange Opening and Closing Hours

• Monday 9:00 am – 5:30 pm;
• Tuesday 9:00 am – 5:30 pm;
• Wednesday 9:00 am – 5:30 pm;
• Thursday 9:00 am – 5:30 pm;
• Friday 9:00 am – 5:30 pm.

However, you can trade the DAX 40 between 8 am and 9 am in the morning and between 5:30 pm and 10:00 pm in the evening. This arrangement lets traders trade the early DAX and the late DAX. So you can trade the stocks that make up the DAX 40 during these different opening hours.

The DAX 40 is also open at night so that investors who work during the day can trade with peace of mind. You can therefore hold overnight trading sessions on DAX 40 stocks and CFDs.

When Is the Frankfurt Stock Exchange Closed?

Apart from its evening closing hours, the DAX is closed on other days of the year. In 2026, the DAX 40 holiday closures are:

• Friday, January 1 for New Year’s Day
• Friday, April 2 for Good Friday
• Monday, April 5 for Easter Monday
• Monday, May 24 for Whit Monday
• Friday, December 24 for Christmas
• Friday, December 31 for New Year’s Eve.

Which Financial Instruments Can You Trade on the DAX 40?

The DAX 40 is a stock index, so it is impossible to buy or own it. To trade it profitably, the question is which financial instruments you can use.

• DAX 40 CFDs

CFDs are financial products derived from changes in the value of an underlying financial index. Simply put, it is trading based solely on the price movements of an asset you don’t own. So you can trade CFDs on the DAX 40. This is the most widespread and most modern form of DAX 40 trading.

• Major Stocks: DAX 40 Components

1. Deutsche Telekom stock: with 30% upside potential, this is the stock of one of the largest companies in the DAX 40, with a market capitalization of €82.2 billion. Most analysts rate this stock a buy.
2. Fresenius SE stock: with 28% upside potential, the stock is worth around €68.40 to buy and €45.27 to sell this Wednesday. Its market capitalization is €30.7 billion. In the latest analyses, analysts advise selling a third.
3. E.ON stock: the German energy giant has 23% upside potential with a market capitalization of €26.69 billion.
4. Volkswagen stock: the German car giant has 22% upside potential. The manufacturer has just one sell recommendation against 19 buy recommendations.
5. Bayer stock: the company’s share price offers 20.52% upside potential for buyers.

Although you cannot own the DAX, you can own shares of the companies that make up the DAX 40. All the companies in the DAX 40 are potential stocks to trade. Above is our list of 5 major DAX 40 stocks.

• DAX 40 Futures (FDAX1)

The DAX is updated at the same time as futures contracts for the following days. Futures are another instrument you can trade on the Frankfurt Stock Exchange. A futures contract is a contract that sets the buy or sell price of a financial asset for later delivery.

German Stock Market News

When trading the DAX, it is important to stay informed about new trends and news that will influence the instrument’s price. The best way to get news on an instrument is to open an account to trade it, and this rule also applies to the DAX. The brokers you open accounts with send you real-time information on all the assets you choose to trade.

You can open an account with eToro or AvaTrade; both brokers are well suited to DAX trading.

How to Invest in the DAX 40

You can trade the DAX 40 through derivatives or buy shares directly in one of the DAX 40 companies. The DAX is an index and cannot be owned. Trading derivatives is a very common format; it is the most widely used and most modern approach today.

There are 40 large German companies that make up the DAX, and their shares are available on the financial markets and accessible to everyone.

To trade profitably, take care to choose a well-regulated, experienced broker that offers the right trading options.

When to Invest in the DAX 40

It is important to know the best times to trade the DAX. Trading at the right moment can be very advantageous, but trading at the wrong time can also be fatal.

You can open positions one hour after the markets open and make sure to close them one hour before the close. During the day, trading is intense, the market is liquid and prices are fairly volatile. Good market analysis should therefore give you good results in this case.

Be careful, however, not to open positions during the pre-opening phase or before a major economic announcement. During pre-opening, traders are still looking at the previous session to predict the one that is starting. Economic announcements, meanwhile, may go against the forecasts that led you to take a position, and you will then make losses.

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Why Invest in the DAX 40 [userip_location type=”country”]?

The DAX 40 is one of the main stock indices in the world. It is the world’s second-largest stock index by market capitalization, and the Frankfurt Stock Exchange is one of the world’s leading financial centers. Its liquidity and volatility offer many trading opportunities.

Which DAX 40 Trading Strategies Should You Use?

• Trade divergences on the DAX 40: divergence situations offer many trading opportunities. On the DAX, building a strategy around divergence patterns is smart; you just need to take all the variables into account. As the name suggests, divergence usually appears as a gap between the direction of prices on the chart and the readings of technical indicators. It generally marks the start of a trend reversal and is a good opportunity to open positions.
• Morning trading strategy on the DAX 40: morning trading involves opening positions very early in the morning before the exchanges open and closing them just before the close. It requires the trader to watch the market throughout the trading session, so it suits day trading. This strategy is based on trend following and requires a stop loss to protect the position from the unexpected.
• Open positions at favorable times and trade volatile markets: avoid opening positions during market pre-opening phases and before economic announcements.
• Set a stop loss on every open position: this is an essential safety measure and a key constant in money management. It provides cover in case of unexpected events.

Adopting a well-designed strategy is essential when trading the DAX 40. Given its volatility, DAX trading can be fruitful but also very risky.

Best Indicators for Trading the DAX 40

Technical indicators are tools available on trading platforms that let you analyze the prices of financial assets on the stock market. One of the most widely used, comprehensive and effective is the Ichimoku. It is an indicator that helps you trade the DAX effectively by giving you the most accurate forecasts possible.

In a downtrending market with resistance to the upside, you can see that the Tenkan always crosses the clouds. This shows how hard investors are trying to reverse the trend. In extended trends, you won’t see this movement, and you can conclude that the downward move is strong enough to sustain the trend.

When the Tenkan crosses the cloud, you can understand that you are in a trending market that could change direction with a little effort. You need to watch out for this kind of scenario.

The Ichimoku is quite effective and can give you good analysis in trending markets, but be careful with consolidating markets.

Technical Indicators for DAX 40 Chart Analysis

Whether for the DAX or a stock such as BASF, the best analysis tools remain oscillators. Most of the time, these are functions derived from the market that detect market pressure. With oscillators, you can easily see the pressure behind buying and selling, as well as overbought and oversold levels. To trade the DAX 40, a few indicators are especially recommended.

• Trade with the RSI: the acronym stands for “Relative Strength Index”. It is a technical analysis indicator introduced in 1978 that measures price momentum on a financial market. It is highly recommended for trading indices, especially the DAX, because these assets generally trend and see little consolidation.
• The MACD on the DAX 40: a popular, easy-to-use oscillator. The acronym stands for “Moving Average Convergence Divergence”. As its name suggests, it is very useful for strategies based on convergence and divergence. This indicator helps identify the trend and anticipate price movements.

DAX Fundamental Analysis

Fundamental analysis is based on collecting and processing macroeconomic data. This data can include changes in a central bank’s interest rate or information on changes in an economy’s unemployment rate. Fundamental analysis aims to predict the impact of an immediate economic situation on future economic growth.

News from the German economy has had a fairly positive influence on the DAX price in recent days. With rising orders in German industry, there is no need to look far to understand the growth the index has seen recently.

The Economic Calendar

It is an essential tool in fundamental analysis, especially for trading stock indices. It helps you anticipate market movements. Economic announcements are very important and a major asset when trading stock indices. When following the German stock market, you can focus on news about commodity demand, energy or the pharmaceutical sector.

History of the DAX 40

• The DAX is the benchmark index of the German financial market. It often reflects the economic situation of the country, and sometimes of the entire eurozone. It was launched on the stock exchange in the late 1980s with a value of 1,000 points and has since gone through mergers, bankruptcies and, in short, the usual life of any stock index.
• Between 2003 and 2007, the DAX made its mark with more than 1,500 days of gains, which lifted it to more than 8,100 points. Like any stock index, the DAX fell in 2009 to near a floor of 2,500 points before resuming its climb. Today, at more than 15,000 points, the DAX is one of the most important stock indices in the world.
• The DAX is therefore the stock index of Germany’s largest companies and an overall picture of the European economy.

DAX 40 Timeline

To understand how the DAX 40 can evolve in terms of both price and composition, it is useful to know its history, from its creation to today. Here is a summary of the most important periods in the index’s history.

The Origins and Creation of the DAX 40

The DAX 40 was created on July 1, 1988, with a base of 1,000 points. When the session opened, it was already quoted at 1,163 points. Frank Mella, then editor-in-chief of the German newspaper Börsen-Zeitung, invented the DAX after his publisher asked him to design an index for the German stock exchange. He was later rewarded for this work.

Since its creation, the DAX 40 has given rise to several related stock indices, including the MDAX, which groups the 50 largest companies just after those in the DAX; the TecDAX, which covers the 40 largest market capitalizations outside the DAX in the technology sector only; and the HDAX, which combines the DAX 40, the MDAX and the TecDAX.

DAX 40 List: The First 30 Companies in the DAX

When it was created, the 30 stocks that made up the DAX 40 were:

• Allianz
• BASF
• Bayer
• Bayerische Hypotheken und Wechselbank
• Bayerische Vereinsbank
• BMW
• Commerzbank
• Continental
• Daimler-Benz
• Degussa
• Deutsche Bank
• Deutsche Babcock
• Deutsche Lufthansa
• Deutsche Post
• Dresdner Bank
• Feldmühle Nobel
• Henkel
• Hoechst
• Karstadt
• Kaufhof
• Linde
• MAN
• Mannesmann
• Nixdorf
• RWE
• Schering
• Siemens
• Thyssen
• Veba
• Viag
• Volkswagen

As you can see, the DAX 40’s composition has changed significantly since then, and many of these companies have been replaced over time. 17 of the original companies in the index are still in it today.

The First Stock Market Crash and Its Impact on the DAX 40

• On October 16, 1986, the Frankfurt Stock Exchange, and therefore the DAX 40, suffered its first historic crash following the Wall Street crash. In that single session, the German benchmark index fell 13% and went on to record several other significant losses.
• But the DAX 40 quickly regained value, gaining points substantially and almost continuously over the following decade until it reached 7,976 points in March.

The Bursting of the Tech Bubble

• The ten years of gains recorded by the DAX 40 at that time were, of course, due to the market’s enthusiasm for booming technology stocks. But that enthusiasm soon began to fade, and many investors liquidated their positions in these stocks to lock in their profits.
• This led to a sudden drop in the German index, which fell back below 2,200 points in March 2003. The DAX had not hit such a low since the end of 1995.
• Fortunately, the German economy, like the global economy, gradually recovered, and the index returned to its uptrend until reaching a record high of 8,000 points in 2000. Unfortunately, the 2008 global financial crisis put an end to this uptrend.

The 2008 Financial Crisis

• In October 2008, the DAX 40 started falling again, and by March 9, 2009, it had already lost more than 56% of its value compared with its 2007 highs.
• A few years later, in June 2014, just after the European Central Bank decided to pursue a low interest rate policy, the German economy recovered strongly and the DAX 40 reached 10,000 points for the very first time in its history.
• In January 2018, the index set another record high at 13,559 points before ending the year at 10,380 points.

The Covid-19 Pandemic

• Finally, the last major event to hit the DAX 40 was, of course, the coronavirus crisis, which sent all the world’s financial markets tumbling in 2020. In February, at the height of the pandemic, the index had just reached 13,797 points but quickly fell to 8,441 points.
• Since then, it has resumed an uptrend, thanks in particular to the success of the country’s vaccination campaigns and the lifting of health and economic restrictions.

Which DAX 40 Trading Styles?

Depending on your availability, your goals and even the instruments you trade, there are several trading styles you can adopt. We will cover the different trading styles based on timeframe.

• DAX 40 Scalping

Scalping is a very popular trading style that involves opening positions over extremely short timeframes. The goal is to profit from small price movements in a financial asset. The trader opens a large number of positions with targets of 5 to 20 pips, earning a little on many positions. Charts are watched on 5- to 15-minute timeframes in highly volatile markets. Here is a DAX scalping strategy.

• Intraday Trading or Day Trading on the DAX 40

This trading style is practiced by many intermediate traders and even professionals. It suits traders who don’t trade all day long, but it requires some attention to market analysis. Prices are watched on 4-hour to 1-day timeframes. You can trade any market this way, provided you do your analysis properly.

• Swing Trading and Long-Term Investing on the DAX 40

This trading style extends over long periods: a position can stay open for days, weeks or even months. Swing trading is also very popular and widespread in high finance. Prices are first observed and then analyzed over long periods. Sometimes the analysis is backed by a major economic announcement.

The trader doesn’t need to spend all day in front of a computer, as is often the case with scalping and day trading.

This is the approach for long-term investments in the DAX 40. If, for example, you want to buy DAX stocks, you can opt for swing trading.

Should You Invest in the DAX 40 in 2025?

Since its last big rebound last October, the DAX has regained strong upward momentum. Since October, the DAX 40 has followed a major uptrend, a situation that is quite favorable for futures traders. This considerable rise also means that the German economy has been in a strong growth phase since last October. It would therefore be advantageous for traders to invest in both trading options available on the DAX: derivatives and stocks.

Analysts follow the same logic, and most currently advise buying rather than selling. In any case, it would be profitable to trade the DAX 40 long or to buy DAX stocks this year.

This advice does not rule out carrying out technical, chart and fundamental analysis before making any trading decision.

Summary of the Pros and Cons of the DAX 40

Investing in the DAX 40 offers several advantages for retail investors, but it also has some limits and risks. Here is a summary table of the pros and cons of trading this index or the stocks that make up the DAX 40.

The Pros of the DAX 40 in Detail

In summary, here are explanations of the main advantages of trading the DAX 40 as a stock market asset:

• A solid economy – Germany’s economy is currently considered one of the strongest in the world, both in size and in export volumes. The country’s annual GDP is among the largest today.
• A member of the European Union – Being part of the European Union gives Germany certain advantages. Thanks to its membership, the country has become more competitive against other industrialized countries and other eurozone countries.
• A skilled workforce and favorable taxation – The German workforce is also one of the most skilled in the European Union, with fewer strikes than in other European countries. In addition, the country’s unified tax code offers a very business-friendly tax policy, which benefits the listed companies that make up the DAX 40.

The Cons of the DAX 40 in Detail

Here are some further explanations of the drawbacks and limits mentioned above in the DAX 40 pros and cons table:

• Bailouts – While being part of the European Union gives Germany some advantages, it also brings problems, including sovereign debt. For example, the European debt crisis between 2010 and 2012 forced this strong economy to take part in bailouts that weakened its finances.
• The debt of other EU countries – EU member states are linked by their sovereign debt problems. When one country cannot pay its debt, it can drag stronger countries into the same situation, which could also hurt the German economy.
• An aging population – Germany’s demographics do not work in this economy’s favor either. The German population is aging, which can be a significant economic burden in terms of social protection. The country’s fertility rate remains significant but not enough to reach the natural replacement rate. That said, the country’s high immigration rate could help reduce this problem in the longer term.
• The economic slowdown – In recent years, Germany’s GDP has declined slightly due to several factors. Global trade and its concerns are slowing many economies, including this one. The fall in GDP should be taken into account before trading on the stock market, as should rising tariffs, which can hit this export-heavy country hard.