The Germany 40 index
The Germany 40 is a tradeable market from Capital.com, enabling you to take a position on the price of the underlyingDAX 40 index using CFDs.
The Dax 40 – or Germany 40 on our platform – is a German stock market index which tracks the performance of the top 40 blue-chip companies listed on the Frankfurt Stock Exchange (FS) or Deutsche Börse.
Reviewed every quarter, the index is compiled using a free-float methodology with market capitalisation a key criteria. In order to be included on the index, companies require a minimum free float of 10% – meaning this percentage of its shares must be available to trade.
Constituents also require an operating or legal base in Germany and a listing in the Prime Standard segment of the FSE. Furthermore, stocks also need to be sufficiently liquid, as well as adhere to high standards of financial reporting as discerned by domestic regulatory bodies.
As a closely-followed index, the Germany 40 is often seen as a proxy for German stock market health and the domestic economy.
Some of the largest companies included in the Germany 40 index at the time of writing are SAP (SAP) Siemens (SIE.DE), Airbus (AIR.PA) and Allianz (ALV.DE). Such companies are mainstays at the top of the index, although lesser-capitalised companies are more likely to change position in the index, or even drop out to be replaced by new stocks that have become sufficiently capitalised to join.
To learn more about the Germany 40, you can visit our guide to trading the Germany 40. To trade our Germany 40 market, you can open an account with us – or practise trading the other indices markets on a demo account.