I'm Currently investigating trading the Euro Sotxx 50, and I know that the contract value is $10 * the index or about $25,000, can anyone tell me what the Dax contract value is. It seems like commissions on the Dax are about the same, so if the contract value is double, assuming similar volitility it seems like it might be a better contract for the commissions. But you also need more $$ to trade it. Dax Contract Value???? Thanks Guys
The multiplier for the DAX is EUR 25 The multiplier for Eurostoxx 50 is EUR 10 Your correct about the commissions, we (IB) charge the same commission rate for each. Full specs are available on the exchange website www.eurexchange.com
I would advise you to be very careful if you decide to trade the DAX. It moves very fast since it is very thinly traded compared to the DJEuroStoxx50. Couple that with the fact that the multiplier is 25 Euros and you have a very volatile trading vehicle. Yes it's true you get a lot of bang for your buck, but you need to be prepared for extreme swings in your daily P/L sometimes. I trade the DAX frequently and I'll tell you it is not terribly uncommon for it to move 6 points or more in less than a second at times. That's a 150 Euros. Last week I had a short position on in the DAX and I had a stop 3 points above the current price. Then some news came out and it instantly jumped up 13 points, where my stop was filled (10 points above my stop price). That was an instantaneous loss of 325 Euros. It's probably a good idea to trade the DJESTOX50 first before you trade the DAX. The moves are not as fast and furious in terms of Euro amounts...and is less likely to give you a heart attack when you are first learning to trade the European index futures. PEG LEG JOE
Peg leg I have heard from friends that the Dax is not as liquid, why would people choose it over the Stoxx. Probably just for the size vs. the commisions I suppose. Ya I think the Stoxx fits my style the best right now. Thanks