How to trade DAX (DE30) and Currencies

The DE 30 (underlying DAX 30) is a stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt Stock Exchange, and contains worldwide brands like Adidas, Deutsche Bank and BMW. Formed in 1988, the underlying DAX 30 is calculated using order book volume and market capitalisation through an electronic system named Xetra.

DE30 is one of the most popular symbols for arbitrage trading. I would like to explain how make proper setup for DE30 latency arbitrage trading and DE30 Hedge arbitrage trading.

Step-by-step

You should check DAX / DE30 correct name and how many digits after dot this symbol has.

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Pic. 1 – MT4 market watch window. GER30

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Pic. 2 – MT4 market watch window. #GDAXI

For example, on pic. 1 symbol name: GER30 and symbol has 0 digits after dot, but on pic.2 symbol name: #GDAXI and symbol has 1 digit after dot.

Latency (1-leg) DE30 / DAX Arbitrage Setup

If you use One-Leg Arbitrage Software from BJF Trading Group, you should map symbol from free feeder (symbol name GDAXI) and your broker’s symbol name.

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Pic. 3 DAX mapping

For example, 2 your mapping should looks like: GDAXI=#GDAXI

Next step you should add symbol to trading panel and adjust trading parameters.

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If it is 0  – you can use default settings
If 1 decimal – you should multiply: “S/L”, “T/P”, “Min profit”, “Pips for MinProfit”, “Trailing step”, “Diff to open” by 10

You should adjust “Bid Offset” and “Ask offset”. It is necessary to choose the Bid Offset and Ask offset values so that the “Bid Diff “and “Ask Diff” value changes from 0 to minus spread value.

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Pic. 4 – Offset

 

Hedge (2-legs) DE30 / DAX Arbitrage Setup

For Hedge (2-legs) arbitrage you should map symbols for both brokers. For example broker 1 has symbol: GER30 and broker 2 has symbol #GDAXI, you should map like on pic. 5

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Pic. 5 – Hedge arbitrage mapping

Next step – you should add GDAXI symbol and make settings.

hedge-arbitrage-settings

FX Currencies Arbitrage Trading

Usually you do not need to do additional mapping and adjust offset for currency trading. With BJF Trading Group One-Leg Arbitrage Software and BJF Trading Group Two-Legs Arbitrage Software, you can trade any available currencies. We recommend to try exotic.