User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Wednesday August 4, 2021 - 10:52:05 GMT -

Share This Story:
| | Email Dax Expands To 40 Members

In September 2021, the DAX will expand by 10 members. It will move from 30 to 40 members in a move necessitated by the crush of Wirecard. As the additional members are welcomed into the club, more stringent rules are expected to apply. Rules that will ensure that another Wirecard moment doesn’t happen ever again.

One of the rules that new members will have to meet to join the DAX 30 is that they have to be profitable in the preceding two years. This is to ensure that they can sustain their profitability and will not crash like Wirecard just a short while after being welcomed into the DAX.

What Is DAX?

DAX is the German index composed of bluechip stocks trading in the Frankfurt Stock Exchange. The DAX was formed in 1988. It has consisted of 30 companies since the beginning. With changes in investor sentiment, there is a need for the DAX to expand in the stock market.

The DAX is valued at slightly over 1 trillion euros. As such, stocks that make up the DAX are highly valued companies that generally indicate the direction or state of the economy. As it stands now, the value of the DAX is about 80% of the value of the Frankfurt Stock Exchange.

The addition of ten more companies to the DAX is good for the industry. This shows that there has been growth over the years. Companies that are expected to rise to the rank of blue-chip have favorable reputations and are also highly profitable.

The DAX is one of the most traded indices around the world. It is ranked as highly as the Dow Jones of New York and regarded as a good indicator of the state of the economy of Germany.

What Does It Take For Companies To Join The DAX?

For a company to become eligible to join the DAX, there must be certain conditions that it has to meet. After the Wirecard scandal, there has been a change in the conditions that companies being admitted into the DAX must achieve.

First, the company must have positive earnings before interest, tax, depreciation, and amortization (EBITDA) for two years prior to their admission.

Companies will also not need to be listed in the Prime Standard of the stock exchange. A company listed in the Regulated Market is eligible to join DAX.

All DAX companies must have an audit committee in their supervisory boards.

Also, companies to be selected to join the DAX must meet certain turnover and profitability conditions. At the same time, they are obligated to publish both annual and quarterly reports.

How To Trade Indices

The stock market and the forex market are governed by the forces of supply and demand. The higher the demand for an asset, the higher its prices go. The lower the demand the lower the prices.

This means that, if you want to make a profit in either market, you have to time the market properly. Buy when the price is low and sell when it is high to make your profit.

Trading an index such as the DAX is different. It is not similar to trading a single stock and thus is not governed by demand and supply. Rather, the price of an index is determined by the price movement of the underlying assets.

This means that, if the price of the assets that make up the index rise, then the price of the index rises. If the price of the majority of the stocks in the index lowers, the price of the index also lowers.

Thus, the index reflects the market depending on how its price moves. Majorly, the price of the index is fairly stable. This is because it is composed of a number of stocks. When there is a volatile price movement in some stocks, others in different sectors are stable. This averages out on the index and ensures that the price of the index remains stable.

So, to trade an index, you need to enter into a Contract For Difference. This allows you to take a position on the index. You can take a long position if you expect the price of the index to rise. Or, you can take a short position if you expect the price to fall.

A Contract For Difference allows you to take a short to long-term trade as you wait for the index price to change direction so that you can make your profit. When the price moves in your favor, you can cash your CFD and collect your profit.


The expansion of the DAX is pleasant news to many investors and traders. The more robust the DAX the better it can be as an indicator of the state of the economy.




Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
The Amazing Trader
Forex Opportunities
Forex Affiliates
Forex CopyTrading
GVI Forex