markets-ger40
What is GER40/DAX40? Germany's index and broker products explained
Understand DAX as a benchmark of 40 major German stocks, how free-float weighting works and why GER40/DAX40 broker products need their own contract checks.
DAX is a major benchmark for the German equity market. Deutsche Börse currently describes DAX as tracking 40 of the largest and highest-turnover German stocks on the Regulated Market of the Frankfurt Stock Exchange, with weights based on free-float market capitalization.
At a broker, traders may see names such as GER40, DE40 or DAX40. These are commonly CFD/derivative products linked to DAX or the related market. They should not be assumed to share the benchmark’s specification or an identical contract across brokers.
What does DAX represent?
Deutsche Börse states that DAX represents a large share of the market capitalization of listed German companies and is calculated from Xetra prices. Weighting uses free-float shares — the portion broadly available for public trading — rather than all shares outstanding.
DAX currently contains 40 companies following the index reform completed in 2021.
Why can GER40 move sharply during Europe?
DAX can react to:
- German and Eurozone economic data;
- ECB policy and rate expectations;
- EUR movements;
- earnings from large constituents;
- industrial/export sentiment;
- European-market opening volatility;
- U.S. events while European markets are still open.
A session is context, not a guaranteed setup.
What should be checked for a broker GER40 product?
In MT5 Specification, inspect:
- contract size;
- tick size/value;
- minimum/step/maximum volume;
- trading hours;
- spread;
- commission where applicable;
- swap/overnight financing;
- dividend/cash adjustments where applicable;
- margin requirements.
Broker A may call it GER40 while another calls it DE40. Following the same market does not make their point values interchangeable.
Performance Index vs Price Index
Deutsche Börse calculates DAX in both price and performance-index forms. This matters when comparing an index chart with a broker product: do not assume every source references the same index variant or handles dividends in the same way.
Three practical mistakes
1. Copying NAS100 lot size to GER40
Point value can differ, so the same volume does not imply the same cash risk.
2. Ignoring trading hours and gaps
Openings and liquidity changes can alter spread and slippage.
3. Forgetting overnight financing
Holding an index CFD for several days can make swap/financing part of the total cost.
Yoshi workflow
Session context → structure → invalidation → cash risk → volume → cost.
Use the same sequence for GER40 instead of a habitual fixed lot.
Open the Position Size Calculator
Estimate Trading Cost
Official sources checked 25 Aug 2026
- Deutsche Börse DAX Glossary: https://live.deutsche-boerse.com/en/know-how/glossary/dax
- Deutsche Börse Free Float: https://live.deutsche-boerse.com/en/know-how/glossary/free-float
DAX is the benchmark; GER40/DE40/DAX40 at a broker is provider-specific product naming. Verify the exact Specification before calculating risk or cost.