DAX index definition

The DAX index (Deutscher Aktienindex) is the main benchmark for Germany's equity market. It tracks the 40 largest and most liquid companies on the Frankfurt Stock Exchange.

The DAX is weighted by free-float market capitalisation, so larger, more liquid companies move it more. It spans automotive, industrials, financial services, healthcare, technology, chemicals, and consumer goods.

Because Germany is the largest economy in Europe, traders also read the DAX as a gauge of eurozone sentiment. You can take exposure through index funds, exchange-traded funds, futures, options, or CFDs linked to it.

DAX index Example

You follow the DAX index for German market performance.

If SAP, Siemens, Allianz, and Mercedes-Benz Group rise on strong earnings, the DAX moves higher. If German industrial data weakens or eurozone risk rises, the DAX falls as investors cut German blue-chip exposure.