DAX Futures (FDAX)
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What Are DAX Futures?
DAX Futures (FDAX) are exchange-traded derivatives contracts based on the German DAX index. Traded on Eurex, they are among the most liquid index futures in the world, allowing traders to speculate on the direction of the German stock market or hedge equity portfolios.
The DAX Future (FDAX) is the premier instrument for trading the German equity market. Just as the E-mini S&P 500 (ES) is the benchmark for the US, the FDAX is the benchmark for Europe. It is traded on Eurex, one of the world's largest derivatives exchanges. Because the underlying DAX index is a total return index (dividends reinvested), FDAX futures do not trade at a discount to the spot index due to dividend expectations (unlike S&P 500 futures which trade at a discount/premium based on fair value). This makes the pricing relationship simpler. FDAX is known for its volatility and large tick value, making it a favorite among professional day traders. A 100-point move in the DAX (which can happen in minutes) represents a €2,500 profit or loss per contract.
Key Takeaways
- FDAX (standard DAX Future) has a contract multiplier of €25 per point.
- FDXM (Mini-DAX) has a multiplier of €5 per point.
- FDXS (Micro-DAX) has a multiplier of €1 per point.
- Prices are quoted in index points (e.g., 15,000.0).
- Trading hours on Eurex are extensive (roughly 01:10 to 22:00 CET).
- Settlement is cash-based; physical delivery of 40 stocks is not required.
Contract Specifications
Symbol: FDAX Exchange: Eurex Multiplier: €25 per index point. Tick Size: 0.5 index points (€12.50 per tick). Expiration Months: March (H), June (M), September (U), December (Z). Settlement: Cash Settlement based on the final Xetra auction price on the 3rd Friday of the expiration month.
The Mini-DAX and Micro-DAX
Recognizing that the €25/point multiplier creates a very large contract (e.g., at 16,000 index value = €400,000 notional), Eurex introduced smaller contracts for retail traders and precise hedging: • Mini-DAX (FDXM): Multiplier is €5. At 16,000, notional is €80,000. Tick size is 1 point (€5). • Micro-DAX (FDXS): Multiplier is €1. At 16,000, notional is €16,000. Tick size is 1 point (€1).
Trading Hours
Eurex offers extended trading hours to capture Asian, European, and US sessions: • Pre-Trading: 07:30 - 07:50 CET • Regular Trading: 08:00 - 22:00 CET (includes the US cash open). • Asian Session: Eurex often extends trading to cover the Asian morning.
Real-World Example: Hedging a Portfolio
A German fund manager holds a €10 million portfolio of DAX stocks. They fear a market correction.
FAQs
Margins are set by Eurex Clearing and vary by broker. For the main FDAX, the initial margin is typically around €20,000 - €25,000 per contract. For Micro-DAX, it might be €1,000.
Generally, yes. The DAX has fewer components (40 vs 500) and is heavily weighted in cyclical industries (autos, chemicals), making it more sensitive to economic news and trade wars.
Yes, if your broker offers access to Eurex (e.g., Interactive Brokers, NinjaTrader). You will need permission to trade foreign futures.
As expiration approaches (e.g., March), traders must close the March contract and open June to maintain exposure. The price difference between the two months is the "calendar spread."
It is based on the intraday auction prices of the 40 DAX stocks on Xetra at 13:00 CET on the expiration Friday. This "witching hour" can be very volatile.
The Bottom Line
DAX futures are the heavy artillery of European equity trading. Offering massive liquidity, extended hours, and significant leverage, they are the primary tool for institutional hedging and professional speculation on the German economy. With the introduction of Mini and Micro contracts, this powerful market is now accessible to traders of all sizes.
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At a Glance
Key Takeaways
- FDAX (standard DAX Future) has a contract multiplier of €25 per point.
- FDXM (Mini-DAX) has a multiplier of €5 per point.
- FDXS (Micro-DAX) has a multiplier of €1 per point.
- Prices are quoted in index points (e.g., 15,000.0).