Is there a difference in contract size between the Germany 30 CFD and the DAX Futures traded on the Eurex? Are the tick values differ as well?
The CFD contract of Germany 30 was created to imitate the FDAX Futures contract size, so from what we have seen, there is no difference in contract size between the CFD and the Futures contract.
The Futures Contract:
- Trading Months - H,M,U,Z
- Trading Unit - EUR 25 per DAX index point
- Trading Hours - 8:50a.m. - 8:00p.m. (CET)
- Tick Size - 0.5 point, representing a value of EUR 12.50
The CFD contract does not have expirations or months, and the liquidity or spread may be different from one forex broker to another.
Ok, thanks. So does the CFD follow the Futures market or the cash dax?
It imitates the cash DAX markets.
Also, please keep in mind the following:Forex brokers will all have different CFD contract sizes. It is important that traders know the contract value and size before they start trading. If you utilize the MT4 platform you can check this by logging into the platform and following the below steps.
Right Click in the Market Watch Window < Select Symbol from the Drop Down Menu < Find the product they are looking for < click it and click on properties
There is a substantial risk of loss in FX trading.
Would a trader using a long term strategy and limit-buy and limit-sell orders to enter the market use CFD’s if there were some concern about the order expiring before it was filled in the futures market?
Supposing I am a part-time trader and I am looking at the DAX index right now, and I decided to enter a limit-buy order at 117500 and a limit-sell at 11280 and went about my regular business and waited until it was filled. If the futures contract expires before it is filled is my order also expired or does it roll over to the next contract? I am assuming my CFD is good till cancelled but I will have to open a new order for every new contract period if I am trading futures?
Thank you for your question, and I hope to address it in a manner that is easy to understand. First, In the case of the German DAX, you have to treat CFD and Futures as two separate instruments. The CFD attempt to immediate the cash markets and Futures is the future value of the Index depending on the month you trade.
You can place limit orders on the CFD as GTC (Good Until Canceled), and they do not expire unless you trade what some call the CFD Futures. They do have an expiration, but they are monthly expirations, not daily. These are what we consider CFD, none the less because these are not exchange-traded futures.
The actual DAX Futures traded on the Eurex exchange are the real Futures. They have only four expirations throughout the year (March, June, Sep, Dec). Final settlement day is the third Friday of each maturity month if this is an exchange day; otherwise, the exchange day immediately preceding that day. The hours of operation are 1 AM to 3 PM Chicago time with 5 PM Sunday open.
You can try a demo here for your Germany 30 CFD: https://www.thinkmarkets.com/en/?clickid=TF8826710&aid=10142&aexid=12093
if we had live stock prices from the german exchange and the dax formula, it is than possible to predict the dax or fdax?
@Max_Cry Thank you for your question.
The FDAX futures contract moves hand in hand in real time with the German 30 industrialized stocks, so there is no “lag” that would give you advantage. If there was, an algo/HFT would take advantage of that. However, if you know a specific individual stock that could have a positive or negative effect on the FDAX overall, you could take advantage of going long or short taking advantage of the leverage that FDAX or MDAX presents.
@Mod-MattZ Thank you for you reply
You are very welcome. Feel free to ask us as many questions as you wish.