Hi, ive been trading for sometime now, mainly indices CFD’s., .but am keen on entering the cash markets.
My question is this, if trading an Indice,like DAX for example on the cash market with zero Leverage does this mean that if i were to buy 1 and the price of the DAX is ,15,461 does this mean each contract the value is £15,461? Ideally this is what im looking for, does this sound correct?
I also am requiring to enter the markets via ECN/DMA.
Here is an example that seems to support your assumption. It does not directly answer your question because I do not know how to “trade a DAX contact with no margin”. It looks like a DAX E-mini futures contract controls €125K and the margin is €5K implying a leverage of 25:1.
One contract on the Dax 30 (EU Index) is equivalent to a market exposure of 1 Euro * The Price. Example: Buy 15 CFDs of DAX at €4312. The full value of the trade is: 15 * €4312= €64,680.
It is from this article about CFDs. Value of One CFD | Contracts-For-Difference.com
According to dailyfx, DAX Today | DAX 30 Index Chart and Forecasts
DAX30 index is currently 15,240.
According to this article:
A DAX Futures Contract is valued at 25 Euros per point, which means that if FDAX is quoted at 5000.0, the value of the contract is 125,000 Euros.
Eurex introduced the DAX E-Mini.
The Dax e-Mini is 1/5 the size of the regular contract and therefore requires less margin for day traders. While many traders were hesitant to trade the E-mini version due to volume issues, that concern no longer exists.
The mini DAX has lived up to the expectations and have become a favourite of day traders worldwide.
Many Thanks for your reply.It makes sense.