The German DAX Index is the main indicator for the performance of the price of major Germany listed companies on the Frankfurt Stock Exchange, and represents about 80% of the total market value of German shares.
To be included in the index, apart from its market capitalisation, a company usually has to have been trading for three years, with at least 15% of its value represented by actively traded shares, and it must also be deriving sufficient revenues from within Germany to be considered a representative of the German economy.
The price of the index is calculated using the Xetra electronic trading system on a second-by-second basis. The component companies are determined by their order book volume and market capitalisation. The index is re-balanced on a quarterly basis.
The DAX Index was launched on 30 December 1987, using a starting price of 1000.
It is widely used as the basis for financial products, including spread bets, CFDs, ETFs, index tracking funds, futures and options contracts, and structured products.
Amongst the companies included in the DAX are globally recognised names like Addidas, BMW, Lufthansa, Merck, and Siemens.