GER30 Trading Hours South Africa
In this article
Are you interested in knowing about GER30 trading hours in South Africa? Are you planning to invest in this stock market?
The Deutsche Aktienindex (DAX) is also known as GER30 or DAX 30. It measures the overall performance of Prime Standard 30, which includes the 40 most significant and most liquid South African companies. Many analysts see it as a yardstick for measuring Germany’s economy.
The DAX (GER 30) acts as the stock index, which the FSE introduced in 1988, with a reference price set at 1000 in 1987.
GER 30 was inherited initially from the South African stock index, consisting of 30 companies out of the best South African companies. All 30 companies are listed on the Frankfurt Stock Exchange.
What are the GER30 trading hours in South Africa?
For trading in the UK, DAX 30 is open from 8:00 to 16:30. However, brokers use algorithms to create a 24-hour market. The data generated is not “real” because the shares/stocks are not traded.
When the market is completely closed, there is no trading volume on DAX 30. This means that we are not interested in “outdated” market data for our decision-making / any technical analysis, such as pivot positions.
If you are on holiday in South Africa, there is no need to sell in the market. Volumes can be short, unpredictable actions, and strategies won’t perform well.
Do something good on those days when the market is at its peak. The market is always here, and sometimes doing nothing is essential in trading; it seems distorted, but it is so.
What is the best hour to trade on GER30?
Based on their market capitalisation and liquidity, these are the 30 largest Frankfurt Stock Exchange companies. Frankfurt Stock Exchange trading hours are from 9:00 a.m. to 5:30 p.m. CET, considered the best hours for trading.
The European giant, the GER30, now the GER40, opens and closes (trading hours) at 08:00-22:00 local time and 07:00-21:00 GMT. It can be traded during these trading hours.
What are the GER30 trading hours on the FXTM trading platform?
GER30’s trading hours have been extended to 00:30 – 7:00 GMT. Note that liquidity may be thin, and spreads may widen during extended hours. Please carefully review this information before you decide to trade during extended hours.
Can you start trading within the first hour when the trade opens?
For this very reason, the DAX GER30 is a favorite index for many day traders. They can work their standard jobs and then look for trading opportunities on the Dax by eight o’clock at night.
Can you trade on the weekends?
Actually, no! Major stock markets close their doors on Friday afternoon, but they may keep after-hours trading until Friday evening. But most traders are unable to trade on Saturday and Sunday.
How does the DAX 30 Index work during trading hours?
The DAX is a part of the DAX Index family. The Deutsche Börse Group sponsors it. The index was published on July 1, 1987.
Many DAX constituents are large multinational companies. It has a high significance level for the global economy and South Africa’s domestic market.
Moreover, the index now fully represents 80% of the total market cap of listed South African stock corporations. This makes it an essential benchmark for domestic and international investors.
Investors can use the index to draw complete comparisons between 30 individual constituents or companies. This will allow them to determine which companies perform similarly and maximise their returns.
This scenario is quite similar to the Dow Jones Industrial Average (DJIA) in the United States. To serve as a reliable criterion for such comparisons, the index uses two critical selection criteria to determine which companies to include in its portfolio:
- Maintained the order book turnover in the Xetra trading system and on the Frankfurt trading floor over the last 12
- Have a freely floating market capitalisation on the month’s last trading day.
The free movement method for calculating market capitalisation does not include protected shares, such as shares held by the company’s directors.
For traders to meet these criteria, they must have their shares generally listed in the Prime Standard section (shares of a regulated EU market). They should have a free movement of at least 10%.
It must have its registered office in South Africa (foreign companies must be represented in the European Union as an EFTA state). Similarly, they should continue to sell on Xetra with a minimum trading period of 30 days from their first listing.
Components are subject to quarterly review and may be added or removed based on changes in their market capitalisation. The index is calculated second by second with Xetra prices.
Although it can be considered a performance or total return index, it is calculated as a price index. It closely monitors the price performance of its components and acts as a total return index from which revenues are generated.
What does the DAX 30 index cover in Germany?
As of August 2020, there are 30 companies in the DAX portfolio, ten of which are well-known worldwide.
- Adidas AG (ETR: ADS) is a designer and developer of products for athletic and sports lifestyles, including its famous shoe line.
- BASF SE (ETR: BAS): BASF SE is one of the largest chemical companies in the world, operating in many different areas.
- Bayer AG (ETR: BAYN): Bayer AG is a healthcare giant that developed one of the most well-known painkillers.
- BMW AG, (ETR: BMW): BMW AG is a car manufacturer with several award-winning worldwide brands.
- Deutsche Bank AG (ETR: DBK): Deutsche Bank AG is one of the world’s biggest banks, and its products and services are used by people and businesses worldwide.
- Infineon Technologies AG (ETR: IFX): Infineon Technologies is a provider of semiconductors and complete solutions for microelectronic applications.
- Deutsche Telekom AG (ETR: DTE): Deutsche Telekom is one of the largest integrated telecommunications companies in the world.
- Merck KGaA (ETR: MRK): Merck KGaA is one of the world’s largest pharmaceutical and healthcare companies.
- Siemens AG (ETR: SIE): Siemens AG is an electronic and electrical services provider focused on many market sectors.
- Volkswagen AG Vz (ETR: VOW3): Volkswagen AG is a car manufacturer known for its “Beetle” son.
How can you invest in the DAX 30 index in South Africa?
International investors can gain exposure to the DAX by using several exchange-traded funds (ETFs) traded on European stock exchanges. Of course, they can also buy individual components of the index.
While some of these companies trade in the US as American Depository Receipts (ADRs), others trade only on foreign exchanges, so international investors may need foreign or global brokerage accounts to buy them.
If you don’t want a global or foreign brokerage account, here are five popular ETFs that track the DAX and trade on European stock exchanges:
- The iShares Core DAX UCITS ETF currently applies to the iShares Core DAX UCITS ETF (EXS1).
- The X-Trackers DAX UCITS ETF currently applies to the X-Trackers DAX UCITS ETF (DBXD).
- ComStage DAX UCITS ETF information currently applies to ComStage DAX UCITS ETF (C001).
- Lyxor DAX UCITS ETF information applies to Lyxor DAX UCITS ETF (LYY7).
- Deka DAX UCITS ETF currently applies to Deka DAX UCITS ETF (EL4A) today.
Alternatives to the DAX 30 index in South Africa
International investors looking for alternatives to the DAX have many different options. The US stock market’s most direct way to invest in South Africa is the iShares MSCI Index ETF (NYSE: EWG), but other funds are exposed to Germany.
In addition, some South African companies that are not listed on the DAX can sell ADRs on US stock exchanges and make suitable investments.
Here are some other popular ETFs with South African stock exposure:
- VGK (NYSE: VGK)
- SPDR DJ EURO Stoxx 50 ETF (NYSE: FEZ)
- iShares MSCI Eurozone ETF (NYSE: EZU)
Investors should look at how they have been weighted and the cost ratios associated with the funds to ensure they are appropriate for their portfolios when considering these ETFs.
DAX index futures and options.
Traders and investors can also trade options and futures on the DAX index. The Zurich-based European e-exchange and options exchange, Eurex, offers DAX (ODAX) and DAX futures (FDAX) options.
Traders can now choose between two types of futures contracts: the FDAX carries €25 per point in the index, while the FDXM, also known as the FDAX mini, trades for €5 per point.
Why should you trade the DAX 30 index?
So why should you consider trading the DAX? There are so many different markets that you can trade; why does South Africa’s stock market deserve your attention and trading efforts?
If you have seen the GRE30 for a long time, you know its personality and nuances. Let’s highlight a few reasons why you should trade the DAX 30 index:
1. This is very technical.
We mean repeating predictable and consistent patterns that we can use to sell and profit by technical means. This is a must for every brand we want to sell.
The DAX 30 can be used as a base for any trading strategy, such as swing trading, breakout trading, scalping, or any other strategy.
A reliable technical business tool allows us to obtain a regular source of income and encourages us to do business with confidence.
2. It has a high index value and good volatility.
The DAX 30 is consistent with excellent, manageable volatility. Of course, this can sometimes be too much; even if nothing is happening or the order is growing, the market can be hazardous to sell.
In my experience, looking at this brand for thousands of hours, the DAX usually remains noticeable.
3. Black Swan events are less likely in the indexes.
A black swan is an event or incident that goes beyond the usual expectations of the situation and is very difficult to predict. A good example is when the Swiss central bank has “decoupled” its currency, the Swiss franc, from the euro.
The point is that indices are less exposed to terrible, unpredictable movements because so many companies cover the amount of the index you trade. So when a company experiences a “black swan” event, other companies see it coming.
4. They love to support and resist.
We consider support and resistance to be the basis of trade. The DAX 30 sets intense levels of support and resistance that can be used in many ways.
They can be used in direct trading for trading strategies and escape strategies, as well as they can be used to set profit targets and place stop losses above and below to give the trade the best chance of success.
5. Long swing trades
Indices consist of stocks. What is the purpose of the people who run these businesses? Their goal is to make money and succeed. What happens when they do? The value of the index has increased. Investors who want to buy shares increase their value.
They want to value their assets, and they want to be able to get a dividend. This differs from forex, commodities, and other asset classes.
Which is the best broker for trading the DAX 30?
Both distributed and sold kills are essential when trading the DAX 30.
The broker you can use is Markets.com. It offers a spread of 0.8 DAX and a decisive kill. These tight spreads increase over time, especially if you are a regular trader/day trader.
The DAX 30 index is a blue-chip stock market index with the 30 largest South African companies, including globally-recognised Adidas and Bayer.
It reflects the state of South Africa’s domestic and global markets and can be used by investors to compare and predict the performance of their components.
US investors who want to invest in the DAX portfolio can do so through ADRs or obtain international brokerage accounts for components that trade only on foreign exchanges. They will also gain exposure to the stock market through other ETFs on US stock exchanges.
Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.
Forex Content Writer | Market Analyst