How to Trade the DAX 40: A Complete CFD Guide

The DAX 40 is Germany's flagship stock index and one of the most actively traded equity benchmarks in Europe. A single CFD position on the DAX 40 gives exposure to the 40 largest German blue-chip companies in one trade, without the need to buy individual shares.

This guide explains how the index is constructed, when it trades, what moves it, and exactly how to open a DAX 40 CFD position on the MT5 platform. It is an educational overview of mechanics, costs, and risks, not a recommendation to buy or sell.

If you are new to index CFDs, start with what is indices trading and how it works for a broader foundation, then come back here for the DAX 40 specifics.

What Is the DAX 40?

The DAX 40 (Deutscher Aktienindex) is the headline German stock index, calculated and maintained by Deutsche Börse. It tracks the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange.

Until September 2021 the index was known as the DAX 30, with 30 constituents. Deutsche Börse expanded the index to 40 components to broaden sector representation, which is why "DAX 40" and "DAX" now refer to the same instrument. Some CFD brokers list it under the ticker GER40; on VantoTrade the symbol is DAX40.

The index is free-float market capitalisation weighted, meaning each company's influence on the index is proportional to the value of its shares actually available for trading. A larger free-float market cap means a larger weight in the index. Component weights are reviewed quarterly by Deutsche Börse's Qualifying Committee, and rebalancing occurs in March, June, September, and December.

To qualify for inclusion, a company must:

• Be listed in the Prime Standard segment of the Frankfurt Stock Exchange
• Meet a minimum free-float requirement of 10%
• Demonstrate sufficient trading volume and order book depth
• Have its registered office or operational headquarters in Germany or the EU/EEA, with primary listing in Frankfurt
• Show profitability over the prior two financial years (a rule introduced after the Wirecard collapse)

The DAX 40 is calculated as a performance index, which means dividends paid by component companies are reinvested into the index value. Most international equity benchmarks (S&P 500, FTSE 100) are price indices that exclude dividends, so direct point-for-point comparisons can be misleading.

CFDs and other derivatives on the DAX 40 carry the risk of substantial loss. Index values can fluctuate significantly within a single session, and traders may not get back the amount initially deposited.

DAX 40 Composition: Sectors and Top Holdings

DAX 40 constituents span Germany's most economically significant sectors. The largest weights are typically concentrated in industrials, technology, financials, and consumer products.

Sector breakdown is approximately:

• Industrials and automotive — Siemens, BMW, Mercedes-Benz Group, Volkswagen, Airbus
• Technology and software — SAP, Infineon Technologies
• Financials and insurance — Allianz, Deutsche Bank, Munich Re, Deutsche Börse
• Consumer and healthcare — Adidas, Beiersdorf, Bayer, Fresenius, Sartorius
• Telecommunications and utilities — Deutsche Telekom, E.ON, RWE
• Materials and chemicals — BASF, Henkel, Heidelberg Materials

A handful of companies tend to dominate the weighting. SAP, Siemens, Allianz, Deutsche Telekom, and Munich Re have all featured in the top weighted positions in recent rebalancing cycles, with each typically representing between 5% and 12% of the index value depending on share price moves and free-float adjustments.

This concentration matters for traders: a sharp move in one heavily weighted constituent can pull the whole index, particularly around earnings releases or sector-specific news. Exact weights change continuously with price action and at each quarterly review, so always check Deutsche Börse's published methodology document for the current composition before assuming weightings.

DAX 40 Trading Hours Explained

Unlike forex, which trades 24 hours, the DAX 40 has defined sessions. CFD trading hours extend the official cash session window, but liquidity profile changes substantially across the day.

Xetra cash session runs 09:00–17:30 CET Monday to Friday. This is when the underlying constituent stocks trade on Frankfurt's electronic exchange and when the official DAX 40 reference price is calculated. Liquidity is deepest during this window.

CFD extended hours on VantoTrade extend trading beyond Xetra hours into pre-market and post-market sessions, allowing positions to be opened or closed when the cash exchange is closed. Spreads typically widen outside Xetra hours due to thinner liquidity from the underlying market.

Key intraday timestamps to be aware of:

• 09:00 CET — Xetra cash open. First major price discovery of the German session. Spreads can widen briefly during the opening auction.
• 10:00 CET — German economic releases. ZEW, IFO, PMI, and CPI data are typically published at this time and can move the index sharply.
• 14:30 CET — US economic releases. Non-farm payrolls (first Friday of the month), CPI, retail sales, and FOMC-relevant data hit US futures and spill into European indices.
• 15:30 CET — US cash open. Wall Street opens. Cross-market correlation between the DAX 40 and S&P 500 / NASDAQ tends to peak during the overlap window.
• 17:30 CET — Xetra close auction. Final reference price is set for the cash session. Volume spikes in the closing minutes.

Holiday calendars follow Deutsche Börse's published schedule. The exchange closes on German public holidays such as Good Friday, Easter Monday, Labour Day (1 May), German Unity Day (3 October), and Christmas/New Year. CFD pricing is paused on these days.

What Moves the DAX 40?

The DAX 40 reacts to a different set of drivers than individual German stocks. Macro events, central bank policy, and currency movements often outweigh single-company news.

European Central Bank (ECB) policy. Rate decisions, forward guidance, and asset purchase programmes directly affect the cost of capital for every company in the index. ECB Governing Council meetings happen roughly every six weeks, with the press conference typically held at 14:45 CET. Hawkish surprises tend to weigh on equity valuations; dovish surprises tend to support them.

German macroeconomic releases. The DAX 40 is sensitive to Germany-specific data because most constituents derive a meaningful share of revenue from the domestic and broader European economy. Key releases include:

• Ifo Geschäftsklimaindex (Ifo Business Climate Index) — published monthly by the Ifo Institute; widely watched as a leading indicator
• ZEW Economic Sentiment — survey of financial market analysts
• HCOB Germany Manufacturing PMI and Services PMI — flash and final readings
• CPI (inflation) — both German and Eurozone-wide
• GDP, industrial production, factory orders, and trade balance

EUR/USD correlation. Many DAX 40 companies are major exporters with significant US dollar revenue exposure (Volkswagen, BMW, Mercedes-Benz, BASF, Bayer, SAP). A weaker euro generally improves the EUR-translated value of foreign earnings, which is why the DAX 40 sometimes rises when EUR/USD falls. The relationship is not mechanical but the correlation is observable across longer time frames.

Sector-specific catalysts. German automotive makers move on EV adoption news, Chinese demand data, and EU emissions regulation. SAP and Infineon move on global tech sentiment. Banks move on yield curve shifts. Knowing which sectors carry the heaviest weight at a given time helps explain index moves that look counter-intuitive at first glance.

Global risk sentiment. As a major export-oriented index, the DAX 40 tends to track global risk appetite. Tariff announcements, geopolitical shocks, and shifts in US equity sentiment routinely spill into European pricing during the US/European overlap.

Three Ways to Access DAX 40 Exposure

Traders have three main routes to gain exposure to DAX 40 price movements. Each has a different cost structure, capital requirement, and risk profile.

1. CFD (Contract for Difference). A derivative contract that mirrors DAX 40 price movements without underlying ownership. CFDs allow long and short positions with fractional contract sizes, no expiry date, and leverage that varies by broker and account type. Costs are built into the spread and overnight financing (swap). On VantoTrade, the DAX 40 CFD is listed as DAX40 with a contract size of 1 and pricing in EUR.

2. Futures (FDAX). The official DAX futures contract traded on Eurex. Standardised contract size with a multiplier of EUR 25 per index point, fixed expiry dates (quarterly), and exchange-set margin requirements. Mini DAX (FDXM) and Micro DAX (FDXS) are available with smaller multipliers for retail-sized accounts. Futures avoid overnight financing but require contract rollover at expiry and typically demand higher minimum capital.

3. ETF (Exchange-Traded Fund). Funds such as iShares Core DAX UCITS ETF or Xtrackers DAX UCITS ETF replicate the index by holding the underlying shares. ETFs are bought and sold through equity brokers like ordinary stocks. No leverage, no short-selling without securities lending arrangements, and an annual management fee (TER) typically in the 0.08%–0.16% range. Suited to longer holding horizons rather than intraday speculation.

Comparing the three at a glance:

Each instrument has its own risk profile. CFDs and futures are leveraged products that can produce losses exceeding the initial deposit. ETFs are unleveraged but expose holders to the full downside of the underlying index.

DAX 40 CFD Mechanics on VantoTrade

The DAX 40 CFD on VantoTrade is listed as DAX40 with the following standard contract specification:

• Contract size: 1 index unit per lot
• Profit currency: EUR
• Quote precision: 2 decimal places
• Triple swap day: Friday (3-day swap charged to cover the weekend)

Spread. The bid/ask spread is the primary execution cost. VantoTrade offers zero commission on index CFDs across both Standard and Raw account types. The Raw Account carries raw spreads from the underlying liquidity providers. Spreads tighten during the Xetra cash session (09:00–17:30 CET) and widen outside that window, particularly during the Asian session and around economic releases. Live spreads can be observed in the trading calculator.

Leverage and margin. Leverage on index CFDs varies by account type and jurisdiction. The available leverage determines how much margin is required to open a position. For example, on a position with a notional value of EUR 22,800 (1 lot at an index price of 22,800), 1:20 leverage requires margin of EUR 1,140; 1:100 leverage requires margin of EUR 228. Higher leverage reduces the upfront capital needed but proportionally amplifies both gains and losses.

Trading DAX 40 CFDs on margin involves a high level of risk. Because losses are calculated on the full notional position, not on the margin deposited, a transaction in DAX 40 CFDs can lose the trader more than the first payment, and traders may be required to pay additional amounts later if the position moves against them.

Overnight financing (swap). Positions held past the daily rollover incur a financing charge or credit. Long positions on DAX 40 are typically charged a debit swap; short positions may receive a smaller credit. Triple swap is applied on Friday to cover the weekend. Exact swap rates are published in the trading platform and update as benchmark rates change. Hold a position long enough and overnight financing becomes a meaningful component of total trading cost.

Tick value. With a contract size of 1 and a quote precision of 2 decimals, a 0.01-point move on DAX 40 is worth EUR 0.01 per lot. A 1-point move is EUR 1 per lot. A typical intraday range of 100–200 points translates to EUR 100–200 of P&L per lot.

Step-by-Step: Opening Your First DAX 40 Trade in MT5

The following walks through the mechanics of placing a DAX 40 CFD order on the MT5 platform. It does not advise when to enter, what direction to take, or how to size the position — those are decisions only the individual trader can make in the context of their own risk profile and trading plan.

Step 1. Locate the DAX 40 symbol in Market Watch. Open MT5 and look at the Market Watch panel on the left side. If DAX40 is not visible, right-click anywhere in the panel and select Show All, or type "DAX40" into the search box. The symbol should appear with live bid/ask quotes.

Step 2. Open the New Order dialog. Right-click DAX40 in Market Watch and select New Order, or press F9. The order window opens with the symbol pre-selected. Confirm the symbol shown is DAX40 and not a similar instrument from another asset class.

Step 3. Set the order type. Choose between Market Execution (fills at the current market price immediately) or a Pending Order (Buy Limit, Sell Limit, Buy Stop, or Sell Stop, fills only when price reaches a defined level). Pending orders allow positioning around a level without monitoring the chart in real time.

Step 4. Define the volume. Enter the lot size. The minimum lot size for DAX40 on VantoTrade is published in the contract specification on the platform. Volume should be calculated from a position-sizing rule based on account equity and the distance to the planned stop-loss, not picked arbitrarily.

Step 5. Set Stop Loss and Take Profit. Enter price levels for SL and TP in the corresponding fields. Stop Loss closes the position automatically if price moves against you to the specified level; Take Profit closes it if price moves in your favour to the target. Both are optional fields, but trading without a stop loss exposes the position to unlimited downside until manual closure.

Step 6. Review and execute. Confirm the symbol, volume, order type, and SL/TP levels. Click Buy by Market or Sell by Market for immediate execution, or Place for a pending order. The order ticket and execution confirmation appear in the Trade tab at the bottom of the platform.

Step 7. Monitor the position. Open positions are visible in the Trade tab with running P&L updated in real time. Positions can be modified (SL/TP adjustment) by right-clicking the position line and selecting Modify or Delete Order. To close a position before SL/TP triggers, right-click and select Close Position.

A practical first step is to run through this workflow on a demo account before committing real capital. Demo accounts mirror live execution mechanics without financial exposure, which makes them suited to building familiarity with the order flow.

Risk Management for DAX 40 CFD Trading

Index CFDs carry distinct risks that differ from those of forex or single-stock trading. Awareness of these risks is the foundation of any sustainable trading approach.

Gap risk on the open. The Xetra cash session opens at 09:00 CET. If material news breaks while the cash market is closed (overnight or over the weekend), the index can open significantly above or below the previous close. CFD pricing during extended hours is based on futures and pre-market activity and may also gap. A stop-loss order does not guarantee execution at the stop price during a gap — it converts to a market order at the next available price, which can be considerably worse than the stop level.

Weekend exposure. Holding a DAX 40 position from Friday close into Monday open exposes the trader to roughly 65 hours of unhedgeable risk. Geopolitical events, policy announcements, or earnings news during the weekend can produce a substantial Monday gap. Position sizing should reflect this exposure if positions are held through the weekend.

Leverage and position sizing. Leverage amplifies both gains and losses on the full notional position. A 1% move against a position with 1:20 leverage represents a 20% loss against the margin deposited. A widely cited rule of thumb is to risk no more than 1%–2% of account equity per trade, with stop-loss placement defining the risk in points and lot size sized accordingly. The arithmetic is straightforward: account equity × risk per trade ÷ (stop distance in points × tick value) = maximum lot size.

Volatility around news releases. ECB decisions, US payrolls, Ifo, ZEW, and PMI releases can produce price spikes of tens or even hundreds of points in seconds. Spreads widen during these moments and slippage increases. Traders may choose to flatten positions before scheduled high-impact releases or to size positions smaller around known event windows.

Correlation risk. The DAX 40 correlates with other European indices (Euro Stoxx 50, CAC 40), with US equity futures, and inversely with risk-off currencies like USD and JPY at times. Holding multiple correlated positions concurrently effectively concentrates risk in the same factor exposure rather than diversifying it.

For a deeper treatment of risk frameworks applicable to leveraged CFD trading, see our guide on risk analysis — the principles transfer directly from commodities to indices.

Frequently Asked Questions About Trading the DAX 40

What time does the DAX 40 open and close?

The Xetra cash session for DAX 40 runs from 09:00 to 17:30 CET, Monday to Friday. CFD trading on the DAX 40 extends beyond cash hours into pre-market and post-market sessions, although spreads typically widen outside the Xetra window due to thinner underlying liquidity.

Is the DAX 40 the same as the GER40?

Yes. DAX 40, GER40, and DE40 all refer to the same index — the 40 largest German blue-chip companies tracked by Deutsche Börse. Different brokers use different ticker symbols. On VantoTrade the symbol is DAX40.

Can I short the DAX 40?

Yes. CFD trading allows both long (buy) and short (sell) positions with no requirement to borrow shares. A sell order on DAX40 in MT5 opens a short position that profits if the index falls and loses if it rises. Short positions carry the same risk-management considerations as long positions, including stop-loss placement and margin requirements.

What's the difference between DAX 30 and DAX 40?

DAX 30 was the original index name when it tracked 30 constituents. In September 2021, Deutsche Börse expanded the index to 40 components to broaden sector coverage, primarily after the Wirecard collapse highlighted concentration risk. The methodology, weighting approach, and ticker continuity were preserved. References to "the DAX" in market commentary today refer to the DAX 40.

How much leverage can I use on a DAX 40 CFD?

Leverage on DAX 40 CFDs depends on the broker, account type, and jurisdiction. VantoTrade publishes available leverage in the account types section. Higher leverage reduces the margin required to open a position but proportionally increases the percentage gain or loss against the deposited margin. Choosing leverage should be a function of personal risk tolerance and trading approach, not maximisation for its own sake.

Are there overnight fees on DAX 40 CFD positions?

Yes. Positions held past the daily rollover incur an overnight financing charge or credit (swap). Long DAX 40 positions are typically charged a debit; short positions may receive a smaller credit, depending on prevailing benchmark rates. Triple swap is applied on Friday to cover the weekend. Exact swap values are visible in the symbol specification within MT5 and update over time as benchmark rates change.

Why does the DAX 40 sometimes diverge from US indices?

The DAX 40 is driven primarily by ECB policy, German and Eurozone economic data, and EUR-related currency moves. While correlation with US indices is meaningful during the New York open overlap, divergence is common when European-specific news (ECB decisions, German political events, EU regulation) hits during the Frankfurt session, or when US-specific news hits after Xetra closes.

Trade DAX 40 CFDs on VantoTrade

VantoTrade offers DAX 40 CFDs on MT5 with zero commission on index CFDs across Standard and Raw account types, EUR-denominated quoting, and access to the full European indices basket from a single account. Compare the two account structures on the account types page or open a demo account to test execution on DAX40 before funding a live account.

For broader context on how indices fit into a CFD trading approach, see the foundational guides on what is indices trading and CFD index trading mechanics, or explore generic strategy frameworks in the indices trading strategies guide.

Risk warning. Trading securities, futures, options, and contracts for differences are complex financial instruments that require knowledge and understanding. Prices can fluctuate significantly and securities may become valueless. Investors may incur losses exceeding the potential for profits. Trading on margin can result in losses greater than the amount initially deposited. Past performance is not necessarily a guide to future performance. The information in this article is for educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instrument. Consider whether CFD trading is appropriate for your circumstances and seek independent advice if necessary.