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Xetra is an all-electronic trading system based in Frankfurt, Germany. With more than 200 trading participants from 16 countries and a market share of 60% for DAX listings, Xetra is one of Europe's most popular and effective trading platforms. The most popular German stock index, the DAX, is also calculated using data from Xetra.
What is Xetra?
The Frankfurt Stock Exchange, run by Deutsche Börse AG, introduced Xetra, or Exchange Electronic Trading, in 1997. In real time, the fully automated trading platform Xetra matches buy and sell orders from traders all around the world. Xetra provides trading in a variety of assets, including shares, ETFs, ETPs, bonds, funds, and certificates, from Monday through Friday from 9 a.m. to 5.30 p.m. CET.The strong liquidity and market quality of Xetra is one of its primary benefits. The ease of buying and selling securities without materially changing their pricing is referred to as liquidity. The fairness, openness, and precision of the trading process as well as the prices are all examples of market quality. Xetra ensures high liquidity and market quality by using several mechanisms, such as:
- Designated Sponsors: These market makers continuously offer binding buy and sell prices for particular securities, providing more liquidity and reasonable prices.
- Protective mechanisms: These are safeguards that stop or halt trading in the event of sharp price fluctuations or technical problems, preventing incorrect trades and ensuring price continuity.
- Market surveillance: The Trading Surveillance Office, the Exchange Supervisory Authority, and the Federal Financial Supervisory Authority are examples of independent authorities that monitor and regulate trading operations.
Xetra also has the benefit of being inexpensive and simple to use. Because Xetra has low transaction fees and commissions, trading there is less expensive than trading through brokers or on other platforms. The only need for trading on Xetra is a connection to the Xetra servers through a vendor or a co-location provider. On Xetra, traders can implement their strategies using a variety of order types and trading models.
To trade on Xetra, you must open a trading account with a broker or bank that is a shareholder in the Frankfurt Stock Exchange and has access to Xetra. The trading laws and guidelines that are relevant to Xetra must also be familiar to you. On Xetra's official website, at https://www.xetra.com/xetra-en/, you can discover additional details regarding these subjects.
For investors who want to trade on European markets, Xetra is a strong and dependable trading system that provides a variety of chances. If you're interested in learning more about Xetra and its products, you can also visit their website to look through its newsroom, events calendar, circulars, mailings, press releases, and focus news. On social media websites, you can also follow or subscribe to its RSS feed.
German Börse AG has filed to trademark Xetra.
