DAX CFDs and spread bets are primarily based on cash markets and futures.
Cash indices:
In order to initiate a position on a cash index, you must do so at the current market price. Since the spreads are narrower, cash indices are popular with short-term traders. IG's DAX spreads, for instance, start at just 1.2 points. In the event that you hold a cash index position open for more than one trading day, you will be charged overnight financing charges.
Index futures:
When you buy an index futures contract, you agree on a price today for delivery at a future date. In contrast to cash indices, index futures include all overnight financing charges in their spreads. If you plan to hold your position for several days, index futures can be a better investment.

Trading the DAX, Germany's premier stock index, can be approached through several strategies. Day trading involves capitalizing on short-term price movements within a single trading day, requiring close monitoring and quick decision-making. Swing trading spans a few days to weeks, focusing on capturing trends and price swings. For long-term investors, position trading involves holding positions for months or years, based on fundamental analysis and economic indicators.

Using contracts for difference (CFDs) allows traders to speculate on price movements without owning the underlying assets. Exchange-traded funds (ETFs) provide diversified exposure to the DAX index. Options and futures contracts offer leverage and the ability to hedge positions. Employing technical analysis, including chart patterns and indicators, and fundamental analysis, such as economic data and corporate earnings, can enhance trading decisions. Risk management is crucial in all strategies to protect against significant losses.