Pepperstone_Default_Thumbnail.png

Homepage

| Pepperstone AE

en-ae - English UAE

| Pepperstone

en - English ROW

zh - Simplified Chinese ROW

zht - Chinese (Traditional) ROW

| Pepperstone TH

th-th - Thailand Thai

| Pepperstone VN

vi-vn - Vietnamese Vietnam

es-la - Spanish LATAM

pt - Portuguese

ar-sa - Arabic Saudi Arabia

ar - Arabic Middle-East

zh-au - Simplified Chinese Australia

| Pepperstone IT

it-it - Italian Italy

es-es - Spanish Spain

| Pepperstone FR

fr-fr - French France

en-eu - English Europe

en-au - English Australia

Cookies alert

<p>Cookies that are essential to the functioning of the website and our products and services. You cannot deactivate these cookies.</p>

<p>Cookies that allow us to improve our offering and website, enabling us to tailor our site to your personal preferences.</p>

<p>Cookies that allow us to provide information and advertising on third-party websites and measure the effectiveness of our marketing initiatives.</p>

<h3>Cookie policy</h3>
<p>To learn more about how we use cookies on this website, please see our <a href="https://assets.pepperstone.com/legal/UK_EU/Cookie_Policy.pdf" target="_blank" rel="noreferrer noopener">Cookie Policy here</a>. You can manage your cookie preferences below. If you clear your cookies using the browser, you may need to set up your preferences again when you next visit the site. test</p>

Dark

Cookies popup

Legal documents

Privacy policy

Website terms and conditions

Cookie policy

Pepperstone Markets Kenya Limited

Market Analysis

Education

Trading tools

Support

Contact us

pepperstone-logo-inverse-rgb.svg

Personal footer

Geo Alert

Get started

Primary CTA v2

Login

Join now

About Us

Help & Support

Refer a friend

Pepperstone-logo-rgb.svg

pepperstone-white.svg

Light Grey

Personal

Partners

Group

Personal site

Pricing

Spreads, swaps and commissions

Funding and withdrawals

Trading accounts

Markets

Forex

Commodities

Indices

Currency Indices

Shares

ETFs

Market holidays

Platforms

TradingView

MetaTrader 4

MetaTrader 5

cTrader

Capitalise.ai

Social trading

Maintenance schedule

Analysis

Market analysis

Meet our analysts

Economic calendar

Learn to trade CFDs

Learn to trade forex

Learn to trade shares

Learn about liquidity

Trading guides

Webinars

Educational videos

Risk warning

<p><em>The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.</em></p>

Article Disclaimer (Market Analysis)

support-button-icon.svg

24/5 Support

UI text

<h2>Why is GER40 trading so popular?</h2>
<p>Pepperstone offers access to the most popular German Share CFDs on the MetaTrader 5 platform. Trade thematics, momentum and price action of Germany's largest companies including Deutsche Bank, BMW, Allianz and SAP.</p>

<table><tbody><tr><td><p></p>
<ul><li>Geographic risk diversification, e.g. a US investor wanting to lower their risk by venturing offshore into Europe where there are different macro-economic conditions compared to their home country.</li><li>If one is bullish on Germany’s prospects, as it’s the largest economy in the EU.</li><li>Thematic play. Given the index has a large tilt towards cyclical sectors, such as financials, materials and industrials, one may want to buy this index or alternatively short based on views surrounding the reflation trade and economic fundamentals.</li><li>The GER40 has many large multinational exporters, hence their price and the index will fluctuate with the value of the euro. One could use the index to express a view on the euro.</li><li>China is Germany’s 2nd largest export destination, so one may want to invest in the GER40 in the belief that China’s economy will increase in strength, allowing the index to ride on the coattails of this tailwind.</li><li>The GER40 can be great for day trading, as it offers ample price swings to profit from and is liquid with tight spreads allowing traders to keep their costs down.</li><li>Lastly, the GER40 can be used to hedge cash single stock positions.</li></ul>
<p></p></td></tr></tbody></table>

Why invest in the GER40?

<table><tbody><tr><td><ul><li>General economic performance in Germany, i.e. economic releases of GDP growth, inflation, retail sales etc.</li><li>European Central Bank’s monetary policies, such as quantitative easing and reducing their interest rates which boosts share prices.</li><li>Global market moves. Usually the US markets’ effects tends to spill over to the rest of the world.</li><li>EU specific issues. Political problems in Italy or risk of EU breaking up for example.</li><li>Earnings reports from companies within the GER40. SAP has just over a 10% weighting, so positive or negative news from that company will have an affect on the overall index.</li><li>China now plays a very large role in Germany’s export markets (2nd). So the health of the Chinese economy could also drive price volatility.</li><li>Reflation, with sectors like financials, industrials and materials benefiting from flows to capture the reflation theme. Given the composition of the GER40, it would benefit from these thematic flows.</li><li>ETF and passive tracker funds buying the individual companies in the index to track the GER40 for investors.</li><li>Lastly, a weaker euro would increase the value of offshore revenues when they’re translated back into local currency (euros). This would boost those companies’ share prices and hence the GER40.</li></ul></td></tr></tbody></table>

What causes GER40 price movements?

<table><tbody><tr><td><ul><li>Speculators/traders who seek to profit over the short-medium term from price fluctuations.</li><li>Investors trying to hedge their single stock positions</li></ul></td></tr></tbody></table>

Who trades the GER40?

<table><tbody><tr><td><strong>Currency</strong></td><td>EUR</td></tr><tr><td><strong>Base margin</strong></td><td>0.5%</td></tr><tr><td><strong>Minimum contract size</strong></td><td>1</td></tr><tr><td><strong>Swap type</strong></td><td>Percentage</td></tr><tr><td><strong>3-day swap</strong></td><td>Friday</td></tr><tr><td><strong>Minimum average spread (pips)</strong></td><td>1.2<strong>†</strong></td></tr><tr><td><strong>Trading hours</strong></td><td>Instrument available from 00:01 - 23:59. Market opens at 01:00 on Mondays, closes at 23:55 on Fridays.</td></tr></tbody></table>
<p><sub><strong>†&nbsp;</strong>Average spreads updated April 2021.&nbsp;</sub></p>

Trading details

<table><tbody><tr><td>Trading hours (GMT+3)</td><td>Average spread (pips)</td></tr><tr><td>03:15-09:00</td><td>4.00</td></tr><tr><td>10:00-18.30</td><td>1.20</td></tr><tr><td>23:00-03:15</td><td>5.00</td></tr><tr><td>All other times</td><td>2.00</td></tr></tbody></table>

Trading hours (GMT +3)

<h2>Indices&nbsp;</h2>
<p><a href="/trading/instruments/index-cfds/">View all Index CFDs</a></p>
<p></p>

Related markets

It's quick and easy to get started. Apply in minutes with our simple application process.

Ready to trade

<p>The DAX (Deutscher Aktien Index) index, which is also known as the Germany 40 or the GER40, is one of the most popular <a href="https://pepperstone.com/en-au/trading/instruments/index-cfds/">indices</a> in the world. It features 40 of the major German companies trading on the Frankfurt Stock Exchange (Deutsche Börse), including the Adidas Group, BMW, Allianz and many more household names.</p>
<p>An&nbsp;electronic trading system, Xetra,&nbsp;provides the prices used to calculate the DAX index. The DAX is a&nbsp;Free-Float Adjusted Market-Cap Weighted Index.&nbsp;&nbsp;</p>

What is the GER40 index?

<p>The GER40 or the DAX&nbsp;index opens at 8am and closes at 4.30pm (GMT), Monday-Friday.&nbsp;</p>
<p>Out-of-hours-prices are also calculated by the&nbsp; Deutsche Börse, which are&nbsp;&nbsp;4.30pm-9pm (GMT) for late trade and&nbsp;7am-8am (GMT) for early trade.&nbsp;</p>

When does the GER40 open and close?

<p>The Germany 40 is influenced by a number of factors relating to Germany's economic performance, including news on the European Union, economic data releases, euro exchange rate fluctuations and earnings reports from companies within the GER40. </p>
<p>Use our <a href="https://eu-app.contentstack.com/market-analysis/economic-calendar/">economic calendar</a> to prepare for key events and find out about their impact <a href="https://eu-app.contentstack.com/market-analysis/">here</a>. If you'd prefer to receive daily updates by email, sign up to the <a href="https://cloud.go.pepperstone.com/join-daily-fix?_ga=2.132584334.1056587278.1591606093-1698641854.1562662857">Daily Fix,</a> provided by our Global Head of Research. </p>
<p></p>


What moves the GER40 index price?

<p>You can trade on the movement of&nbsp;14 major stock markets around the world&nbsp;including&nbsp;US, Europe, Australia, and Asian indices, without commission.&nbsp;You can find a full list <a href="/trading/instruments/index-cfds/">here</a>.&nbsp;</p>

What other indices do you offer?

<p>Start trading the GER40 Index today by following these simple steps:</p>
<ol><li>If you're not already a Pepperstone client, open an account <a href="/register?legalEntity=individual&locale=en">here</a>.&nbsp;</li><li>Complete our short application form and fund your account.&nbsp;</li><li>Connect on your preferred trading platform (MT4, MT5 or cTrader).</li><li>Select 'GER40' and place your trade.&nbsp;</li></ol>

How can I start trading the GER40 with Pepperstone?

<h3 style="text-align: center;">Ready to trade?</h3>
<p style="text-align: center;">It's quick and easy to get started. Apply in minutes with our simple application process.</p>

Ready to trade?

Germany 40

Why is GER40 trading so popular?

Instrument specification

Ready to trade?

FAQs