Getting latest data loading
Home / Blog / blog / DAX Kapital

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

DAX Kapital

Most of my clients here at Accendo Markets are UK investors, focused on investing in FTSE stocks. They know and love UK’s household brands and their trading preferences lie onshore. Amongst persistent Brexit uncertainty, many investors are looking to diversify their portfolios. Lately, I’ve been receiving questions about trading overseas securities. Namely, the Germany’s DAX.

The German index can be interesting to investors who are looking to gain exposure to European automakers and industrials. Companies like BMW and Siemens are UK household names. Many investors, however, need support in navigating a foreign market. An educational overview is long overdue.

So, what is the DAX and how do you trade it? DAX stands for Deutsche AktienindeX (which literally means “German Stock Index”). It is an index of 30 of the biggest companies on the Frankfurt Stock Exchange by market capitalisation. Because it is capitalisation-weighted, its admission criteria are broadly similar to that of the UK’s FTSE 100 or the US’s S&P 500.

Just like other indices, you cannot buy or sell the DAX directly like a stock or a currency. Instead, investors can trade DAX derivatives. This includes futures or options which mirror the up and down movement of the index. The main platform for DAX futures is the Eurex Exchange in Germany.

Can you still trade the DAX if you don’t have a German broker? No problem. The answer is CFDs. On Accendo Markets trading platform, our clients have access to trading DAX CFDs as well all major DAX constituents.

What’s even better, CFDs are traded using leverage, meaning you only need to put down a 20% deposit to gain full exposure. And the new European regulations automatically protect all CFD investors with a built-in safety buffer.

To limit your losses, you get automatically closed out if the value of your DAX position falls by more than 10%. And in the unlikely case where the DAX suddenly falls by more 10%, you can never lose more than the value of your initial deposit.

The German market has been struggling lately, with the DAX -20% from 2018 highs. To become a part of the DAX, a company must operate in Germany. This means that the DAX can serve as a proxy for the German economy. The latter is slowing down (+1.1% YoY, slowest pace since the 2013 contraction) and German consumer confidence is at 1.5 year lows.

What does the future look like for German equities? Is there an opportunity for London investors to benefit from the market sell-off in Germany? Much of the outlook depends on the outcome of US-EU trade negotiations. German market is deeply senstitive to the threat of US automotive tariffs. All German automakers were deep in the red since end of 2017. VW is -13%, BMW -16% and Daimler -30%. That said, the worst may be behind them and all three are 5-13% off their 2018 lows.

Do you think US President Trump would follow on his threat to impose protectionist tariffs on German cars? Or will Angela Merkel’s charm offensive succeed in shielding German manufacturers from new trade restrictions? The US-China trade negotiations seem to be going well, could Germany and the Eurozone get a boost from a similar US-EU trade truce?

DAX is already over 6% off its worst 2018 levels, bouncing off a 5-year rising support. With the trade optimism permeating the markets, could we see a revisit of 2018 lows to revisit the index’s 13600 record highs? A full retrace would imply an almost 25% upside for DAX investors.

If you feel like there is a trading opportunity here, Accendo Markets can help you take advantage using our trading platform and our award-winning research service.

Taking the first step is easy, just click here to subscribe to our Gold Pass and start receiving our daily trade opportunities directly into your inbox.

Mark Crouch, Trader, 11 January 2019

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
EXCELLENT

4.81 Average

156 Reviews

George

I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 7 months ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 10 months ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 1 year ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 1 year ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 1 year ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 1 year ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 1 year ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 1 year ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 1 year ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 1 year ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 1 year ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 1 year ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 2 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 2 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 2 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 2 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 2 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 2 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 2 years ago

.