The DAX 30 is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. This index represents 30 of the largest and most liquid German companies that trade on the Frankfurt Exchange.
Germany has long been a leading nation in Europe with its powerful manufacturing and global corporations which makes its top 30 companies in the DAX 30 very appealing to traders.
Trading the DAX 30 on PrimeXBT allows for traders to benefit from the rising and falling prices with both long and short trades, but also with advanced charting tools and technical indicators to improve trading results.
Margin trading on the DAX 30 means that the trader will use funds that are provided by PrimeXBT to open larger positions while only putting up a small part of the overall position. Essentially, margin trading improves trading results so that traders are able to realize larger profits on successful trades.
This initial investment is known as the margin, and it is closely related to the concept of leverage. In other words, margin trading accounts are used to create leveraged trading, and the leverage describes the ratio of borrowed funds to the margin. This can lead to higher earnings by the leverage for a successful trade, but the leverage also comes into play with unsuccessful trades.
For example, If a trader takes a long position of $2,000 on the DAX 30 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.
Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.
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