TradeWx, weather trading site now launched
CX, a United States regulated derivatives exchange, has launched www.TradeWx.com, pronounced ‘trade weather.’ TradeWx is a site on CX devoted to trading contracts on tropical storms and other types of weather events.
The initial tradable contract will be on named hurricanes. TradeWx expects to provide an expanding set of financial products relevant to individuals and small businesses, including financial firms, on temperature (high and low), precipitation (snow and rain) and other potentially costly weather risks.
How does a hurricane prediction derivatives contract work? You pick a zip code where you think the next hurricane will make landfall, or that it will dissipate at sea. If the hurricane makes landfall within 75 miles of the zip code you correctly selected (or stays at sea without landfall as you predicted), then you are paid under the contract.
How does the payout work? The amount paid under the contract varies based upon the predictions of the other market participants, meaning that the amount that is paid is determined by the number of participants with wrong predictions. That amount is divided among all those with correct predictions.
TradeWx allows you to protect yourself or your business from the financial risks caused by an Atlantic storm, and soon rainfall and snowfall. TradeWx calculation and order entry tools and weather information can help you get connected to and trade on a weather-focused trading platform and the contracts enable you to get protection against weather-related financial risks.
You can register online today for a CX TradeWx account. Funds deposited into TradeWx accounts can be used to trade CX's weather products as contracts become available.
If weather traders would like to hone their skills prior to trading with money, they should play Forecaster Challenge, a weather trading simulation game. They can even earn up to $100 in a CX TradeWx account by playing the game which can be used towards trading on TradeWx!
AccuWeather provides weather-related data to CX Futures Exchange and is compensated for this data. Visit www.TradeWx.com today to learn more.
