What is the meaning of Xetra?
Operated by the Deutsche Börse, Xetra is a German Stock Exchange trading system. With 45 issuers, about 2,500 ETFs & ETPs, and €19 billion in average monthly on-exchange turnover, Xetra is the leading trading venue in Europe.
Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.
Frankfurt Stock Exchange, Source: Wikipedia
Xetra facilitates electronic trading of financial instruments that include stocks, bonds and exchange-traded funds (ETFs). It is noted for its efficiency and transparency, which enables a platform for trading on several European stock exchanges.
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What is the difference between Xetra and Nasdaq?
The German stock exchange Xetra is operated by Deutsche Börse. Nasdaq, on the other hand, is an American stock exchange.
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What is the DAX Index?
The DAX is a German stock market index. It represents the 30 largest and most liquid companies that trade on the Frankfurt Stock Exchange. It enables the trader to have exposure to the German market and execute the investment strategies accordingly.
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What is Xetra trading platform?
Xetra, the trading platform, stands for the reference market for German equities and exchange-traded funds. Maximum stock trading in Germany happens through this platform.
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What is Xetra trading hour?
The trading hours for Xetra are usually from 9:00 AM to 5:30 PM Central European Time (CET), Monday to Friday. It aligns with the regular European market.
Types of assets traded on Xetra
With 45 issuers, about 2,500 ETFs & ETPs, and €19 billion in average monthly on-exchange turnover, Xetra is the leading trading venue in Europe.
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Stocks: Among the different assets traded on Xetra, Stocks are important. Via Xetra, traders can buy and sell German and important international stocks
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Bonds: Next that comes in the queue are the bonds. These are debt securities that are issued by governments, municipalities, or corporations
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Derivatives: One of the other assets that can be traded on Xetra is the derivatives. These are the financial contracts whose value is derived from an underlying asset
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ETFs (Exchange-Traded Funds): Next comes the Exchange Traded Funds. These are investment funds that are traded on stock exchanges. They usually track an index or a basket of assets
How to trade on Xetra
To trade on Xetra, you need to follow the below instructions:
Creating an Account
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Choose a brokerage: Select a brokerage that enables you access to the Xetra trading platform. You must make sure that the broker is reputable and suits your trading requirements
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Finish up account application: Then, you need to follow the brokerage's instructions to open an account. This often includes providing personal information and financial details
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Placing a Trade
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Fund your account: The next step is to deposit funds into your trading account
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Research: Then comes the next step. You must analyze the securities you're interested in trading. Look for factors like market trends, company performance, or economic indicators
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Use the trading platform: Log in to the brokerage's platform and navigate to the Xetra market
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Place an order: Select the security you want to trade, particularize the quantity, and select the order type
To make sure you don't make a mistake when executing a trade, check out the tutorial: 4 Steps For Trade Execution.
Managing Your Account
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Monitor your portfolio: Account management is one of the crucial steps while trading on Xetra. Keep track of your investments and stay updated about the market changes
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Set alerts: Next is to utilize alerts. You can do this to be notified of important price movements or news that affect your investments
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Risk management: Execute strategies to manage risk, like setting stop-loss orders
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Review and adjust: Remember that you must regularly assess your portfolio. Consider your financial goals and based on that adjust your positions as needed
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Conclusion
Xetra is a pan-European electronic trading platform owned and operated by Deutsche Börse. It is the leading trading venue for equities, bonds, and exchange-traded funds (ETFs) in Germany and one of the largest in Europe. In November 2023, order book turnover on the Xetra trading platform amounted to 101.44 billion euros.
Glossary for novice traders
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1
Risk Management
Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.
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2
Trading system
A trading system is a set of rules and algorithms that a trader uses to make trading decisions. It can be based on fundamental analysis, technical analysis, or a combination of both.
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3
Forex market trend
In the Forex market, a “trend” is the label used to describe the general direction that the prices of currency pairs are moving in, over a specific period of time. Trends are basically the pattern that a currency pair appears to be following and can help traders determine when to enter and exit a trade.
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4
Options trading
Options trading is a financial derivative strategy that involves the buying and selling of options contracts, which give traders the right (but not the obligation) to buy or sell an underlying asset at a specified price, known as the strike price, before or on a predetermined expiration date. There are two main types of options: call options, which allow the holder to buy the underlying asset, and put options, which allow the holder to sell the underlying asset.
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5
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
Team that worked on the article
Upendra Goswami is a full-time digital content creator, marketer, and active investor. As a creator, he loves writing about online trading, blockchain, cryptocurrency, and stock trading.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).