Mini-DAX Futures: Trading Strategies with Dan Gramza

Dan Gramza FDXM FDAX DAX Eurex Futures Trading

In today’s global economy, diversification now means exposure to international markets. Many opportunities for global diversification exist with one of the most versatile instruments being Mini-DAX Futures (FDXM).

In the video tutorial below, watch Dan Gramza, President of Gramza Capital Management, Inc., introduce how traders can use Mini-DAX Futures as a gateway to the German Equity Index Markets. An international consultant and Chicago floor trader with over 30 years of experience in the markets, Dan also demonstrates his methods of trading Mini-DAX Futures.

Why Invest in the German Market Specifically?

Germany is the largest economy in the European Union and its DAX index is a barometer of economic strength in the region. In addition, the companies which make up the DAX index are global players allowing investors to take part in the global economy from a unique angle.

Many of the moves in the Eurex exchange begin in the Asian markets and this can serve as a gauge of market direction for traders prior to the open.

DAX Index

The DAX (FDAX) is Germany’s blue-chip stock market index comprised of 30 of the largest and most liquid companies trading on the Frankfurt Stock Exchange. The DAX tracks the performance of these companies which represent roughly 80% of the German exchange’s market capitalization.

The DAX is utilized both as a price and performance index and as of July of 2018, it’s market capitalization was valued at 124,619.47 million Euro.

Advantages of the Mini-DAX (FDXM)

At 1/5th the size of the full contract, the Mini-DAX (FDXM) allows for market participation by a broader spectrum of traders. Action is increasing in the FDXM with over 60% growth in the last 2 years and Average Daily Volume standing at 35,000 contracts. This volume increase reflects new traders entering the market along with added liquidity in the market.

Mini-DAX Futures Contract Specs

  • Class: Futures
  • Trading Symbol: FDXM
  • Pricing Unit: Euro
  • Tick Size: 1
  • Tick Value: 5 Euros
  • Point Value: 1 = 5 Euros
  • Average Daily Volume: 35,000 (Year to Date July 2018)
  • Intraday Margin: $1000 (USD)
  • Contract Months: March, June, September & December
  • Trading Hours: Monday through Friday, 2am-4pm ET
  • Position Limit: 25 Contracts

While the FDAX is 25 Euros per index point, the Mini-DAX (FDXM) is only 5 Euros per index point. Additionally, the Tick Value of the FDXM is only 5 Euros compared to the FDAX’s 12.5. This makes Mini-DAX Futures a resourceful and easy to access instrument for new futures traders.

Traders can also take advantage of the non-US trading hours of the Eurex exchange which operates from 2am-4pm EST Monday through Friday.

Get started with NinjaTrader’s award-winning trading software and begin your analysis of global markets today!