What is the Dax 40 index?

The DAX 40 (Deutscher Aktien IndeX) is a stock index of the 40 largest blue-chip German companies trading and listed on the Frankfurt Stock Exchange. Just like the S&P 500 or FTSE 100, the DAX 40 is a capitalization-weighted index, meaning it essentially tracks the performance of the 40 biggest publicly traded companies in Germany.

What does Dax 40 stand for?

Note: Low and High figures are for the trading day. The DAX 40, or DAX Index, is a German stock market index comprising the 40 biggest companies - by market capitalization and liquidity - trading on the Frankfurt Stock Exchange (FSE). The DAX 40 is considered a strong measure of German and European economic health.

Why is the Dax 40 so popular?

The DAX 40 is oftentimes more volatile than the wider equity index, and this explains its popularity among traders. The index is also popular thanks to its excellent exposure to leading companies, great liquidity, and the fact its stocks are highly international (most of its companies derive their earnings globally.)