At GKFX on April 5, 2018 at 6:00 p.m. in the current "The Trading Sessions Webinar" with Harald Weygand the topic "This is how I trade DAX, Dow Jones, Nasdaq, gold and oil.". The three mentioned indices are among the most important and best-known in the world, while investors in commodities trading often trade in oil or gold. In this webinar, Harald Weygand also shows which chart signals are interesting here and what traders should pay attention to in terms of risk and money management.
Now to test winner Plus500 and trade
Der most important German stock index
The DAX is the most important German stock index and has established itself as the leading index for the German stock market. It lists the 30 largest and most liquid companies in the German stock market in terms of their market capitalization. The DAX tracks 80 percent of the market capitalization of all stock corporations that are listed on the stock exchange in Germany.
The index was introduced in 1988. The DAX was developed by the consortium of the German Stock Exchange, the Frankfurt Stock Exchange and the Börsen-Zeitung. He continues the index of the Börsen-Zeitung, which goes back to 1959. The three developers involved only wanted to introduce an addition to the existing stock indices, but the DAX quickly became known and developed into the most important index in Germany.
Seen in public as a performance index
Although the DAX is published as a performance and price index, it is generally perceived in public as a performance index. In the case of a performance index, the index is calculated as if the dividends of all companies contained therein are reinvested. The dividends are not taken into account in a price index. The weighting of companies in the DAX is based on their free float market capitalization, i.e. on the value of freely tradable shares.
companies listed in the Prime Standard
companies that are listed in the To be listed on the DAX, must be listed in the Prime Standard of the German Stock Exchange and traded continuously in Xetra. In addition, other criteria must be met. At the regular adjustment date in September or on one of the three extraordinary adjustment dates, the composition will be checked and new shares may be included in the DAX. For example, insolvency may result in changes in the composition even outside of these dates.
Dow Jones' well-known US index
In the USA, the Dow Jones Industrial Average is perhaps the most important Index. It was created in 1884 by Charles Dow and Edward Jones, the founders of the Wall Street Journal and Dow Jones. In this way, Charles Dow wanted to measure the development of the US stock market.
The Dow Jones is one of the two oldest stock indices in the US. Today it consists of the 30 largest American companies. Although there are several variants, the classic Dow Jones index is calculated as a price index, i.e. exclusively on the basis of share prices. Which companies are included in the Dow Jones is not clearly defined. Ultimately, the editor of the Wall Street Journal decides what always leads to criticism. The Dow Jones is recalculated every second during trading hours on the New York Stock Exchange. Shares with high prices have a stronger influence on the index than weaker shares.
Nasdaq Composite with many technology shares
The Nasdaq Composite is also in very important to the United States. It is the largest stock index on NASDAQ, the largest electronic exchange in the country. This index summarizes over 3,000 large companies from the technology sector. The NASDAQ-100 comprises the 100 stocks from the technology sector with the highest market capitalization. The Nasdaq Composite is also a price index. The stocks in the index are weighted based on their market capitalization and thus reflect the performance of the stocks traded on NASDAQ.
Helpful leading indicator
In Combined with the Dow Jones Utility Average, the Nasdaq Composite is a good leading indicator. The Dow Jones Utility Average lists very low-fluctuation utility stocks, which contrast with the dynamic values of the technology industry in the Nasdaq Composite. Therefore, from the combination of both indices one can draw good conclusions about the development of the entire stock market.
Indices for branches or regions
Indices always form a certain branch or shares of an entire country. Therefore, investors do not have to buy each share individually. With CFDs, you can bet on an entire index and thus participate in the performance of several shares. Even those who do not trade in indices should take a look at the DAX or the Dow Jones from time to time, because they are a good indicator for the entire stock market and reflect the current situation of an industry or the entire economy.
Now the test winner Plus500 and trade
Investors should be familiar with the composition
Investors should always know which stocks represent the index they want to trade are. You can also observe the price movements of the individual stocks and draw conclusions on the entire index from them. For indices such as the DAX, which refer to an entire country, the overall economic situation of the country can also have an impact on the index.
If the share price of a very high-revenue company goes down, this can have a greater impact on the Have indexes than with smaller companies. Indices are generally less volatile than individual stocks. Nevertheless, there can sometimes be very large and short-term fluctuations up and down.
Introduction to Trading Central
Also Commodities Part of the webinar
In the GKFX webinar "The Trading Sessions: How I Trade DAX, Dow Jones, Nasdaq, Gold and Oil." it will also be about raw materials. Oil is one of the most important raw materials and also plays a major role for the entire global economy. Investors who want to invest in oil mostly use futures contracts, CFDs or certificates because they do not want to buy oil directly, but want to benefit from the performance. Two very important types of oil are the North Sea type Brent and the American oil type West Texas Intermediate (WTI).
Trading in raw materials is different from other underlyings. Here there can be very large fluctuations. Therefore, investors should pay close attention to their risk management and hedge their investments with other underlyings. Beginners in particular are often advised to only trade commodities in addition to other investment instruments.
Commodities important for the global economy
The prices of commodities are closely linked to the international economic situation and have a significant impact on consumer prices. Consumers recognize changes in the oil price at the petrol station or when buying heating oil. In addition to oil, precious metals such as gold and silver play a major role in the trading of raw materials. Gold is particularly interesting for investors in uncertain times. It can often be observed that a falling dollar exchange rate goes hand in hand with rising oil prices. Incidentally, there are own indices for raw materials. The J.P. Morgan Commodity Curve Index family (JPMCCI) tracks the development of several areas and also the Thomson Reuters CRB index and the Bloomberg Commodity Index show the performance of raw materials.
Index CFDs on the DAX
Traders can trade at GKFX the DAX for as little as ten cents per point. In this case, the margin is one percent and the spread is one point. Traders can start trading with small transaction sizes from 0.1 lot. With CFDs on indices, traders participate in rising and falling prices.
Futures on crude oil
On crude oil, GKFX offers two futures contracts. Traders trade the oil price, These are subject to the exchange rate of the Intercontinental Exchange (ICE) and are quoted in dollars per barrel. While Brent plays the biggest role in Europe, WTI is very important in the USA. Brent is mined on the bottom of the North Atlantic, while WTI is mined on land and then pipelined across the country. When trading crude oil, traders at GKFX pay a spread of five points. There are no further commissions. The minimum trade size is also 0.1 lot.
CFDs on gold
Gold can be traded with CFDs at GKFX. From a technical point of view, gold is actually one Currency because gold is quoted against the dollar. Gold is especially popular with investors when the market is uncertain. Therefore, gold investors can diversify their portfolio or hedge other investments. Gold may therefore be an alternative to risk management. CFDs are based on price changes for gold. The minimum trade size at GKFX is 0.1 lot.
Conclusion: indices and raw materials interesting investment instruments
Are you interested in trading in indices and raw materials? GKFX not only offers interesting conditions for these investment instruments, but also informative webinars. In "The Trading Sessions: How I Trade DAX, Dow Jones, Nasdaq, Gold and Oil." on April 5, 2018 at 6 p.m. with Harald Weygand, among other things, helpful chart signals and questions of risk and money management when trading indices and commodities are discussed.
In Germany is the DAX the most important stock index, while in the US the Dow Jones and the Nasdaq Composite are very important. With index CFDs, you speculate on the entire index and do not have to buy each share individually. Indices always cover an entire industry or even an entire country. They are considered less volatile than shares, but can sometimes move significantly up or down.
Oil and gold are very popular in commodities trading. As a rule, investors do not want to buy both commodities directly, they just want to participate in the performance. GKFX offers trading in crude oil with futures; CFDs are used in gold trading. Gold trading in particular can also be used very well in to hedge other investments and to diversify your own portfolio.
Now test winner Plus500 and trade