Range of Markets
Financial CFD Markets Explained
We have collated a detailed description of all our financial CFD markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.
Germany 40, Mar
NTR: | Contracts | % * | |||
---|---|---|---|---|---|
| .50 | ||||
| 2.50 | ||||
| 5.00 | ||||
| 15.00 |
Limited Risk NTR: | Contracts | % * | |||
---|---|---|---|---|---|
| 5.00 | ||||
| 15.00 |
Spread Premium: | Contracts | Multiplier | |||
---|---|---|---|---|---|
| 1 | ||||
| 3 | ||||
| 6 | ||||
| 20 |
*When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.
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Market Description
The Deutscher Aktien Index or DAX is an index consisting of the 40 major German companies, as measured in order book volume and market capitalisation, trading on the Frankfurt Stock Exchange. Some of the companies listed on the DAX include BMW, Deutsche Bank, Siemens and Volkswagen Group.
The DAX is a very volatile market, with market movements of 100-200 a day being frequent. This makes it a prime market for a prepared CFD trader as there is a potential to gain huge profits.
If you want to place a CFD based on movements of the DAX with Spreadex, you can trade a product known as the Germany 30 Index.
Spreadex offers a Germany 30, Daily contract as well as different future contracts. These contracts will offer a spread on the Germany 30 of, for example, 6,593 – 6,596. If you think the price will end up being higher than our spread at the contract’s expiry period, you can buy at the ‘offer’ or ‘ask’ price (the higher part of the spread). If you believe the price will end up being lower, you can place a trade to sell at the ‘bid’ (lower part of the spread).
If your trade is successful you will win the points difference multiplied by number of contracts traded. If your trade is unsuccessful you will lose the points difference multiplied by number of contracts traded.