The DAX is a stock market index consisting of the 40 major German blue chip companies trading on the Frankfurt Stock Exchange. It is a total return index.
Prices are taken from the Xetra trading venue. According to Deutsche Börse, the operator of Xetra, DAX measures the performance of the Prime Standard’s 40 largest German companies in terms of order book volume and market capitalization.
DAX is the equivalent of the UK FTSE 100 and the US Dow Jones Industrial Average, and because of its small company selection it does not necessarily represent the vitality of the German economy as a whole.
Stock Strategy
The L-DAX Index is an indicator of the German benchmark DAX index’s performance after the Xetra trading venue closes based on the floor trading at the Börse Frankfurt trading venue.
The Index basis is the “floor” trade at the Frankfurt stock exchange; it is computed daily between 09:00 and 17:45 Hours CET. The L/E-DAX index is calculated from 17:55 to 22:00 CET and from 08:00 to 09:00 CET. The DAX has two versions, called performance index and price index, depending on whether dividends are counted.
The performance index, which measures total return, is the more commonly quoted, however the price index is more similar to commonly quoted indexes in other countries.
