TradeWx Overview

TradeWx provides access to the CX Futures Exchange, L.P. weather market to allow you to trade the results of different weather events. Some events are large (like Tropical Storm Landfalls), others are smaller (like the accumulation of Snow on a particular day), but the overall objective of TradeWx is to allow you to either hedge financial risk that you may incurr based upon weather events, or speculate on the weather.

If at any time you need additional help or have any questions, our support team is standing by to assist you. 

 

We're here to help!
Our support team stands at the ready to assist you. Reach us from TradeWx.com/ContactUs or give us a call at +1 (877) 300-4555

 

Help Topics

  1. Applying and Account Creation
  2. Funding
  3. Trading
  4. Weather Products
  5. Useful Resources
  6. Quick Facts
  7. Trading FAQ
  8. Snow Trading FAQ

 

Applying and Account Creation

For most people, applying for an account on TradeWx is quick and easy. Since you are opening an account with a financial services firm, we require some personal information in order to verify your identity. We take our responsability to reduce the risk of fraud and money laundering through our services seriously, and the extra steps to complete your account opening process are essential to maintaining the security of our systems - and your money.

  1. Apply

The application process begins here. We only require you to provide an email address and create a secure password to move forward to the following steps.

  1. Review Legal Documents

TradeWx is a service provided by CX Futures Exchange, L.P., an exchange regulated by the U.S. Commodity Futures Trading Commission (“CFTC”). As you are accessing a real financial marketplace, you will need to review and agree to a few legal documents before you will be allowed to trade.

  1. Provide Contact Information

As part of our commitments to Know Your Customer (KYC), we need to collect some basic personal information from you. This information is kept confidential and stored in accordance with our Privacy Policy.

  1. Verify Your Identity

The final step in opening an account is to provide us your Social Security Number (SSN) and Date of Birth. These are used to ensure that no one creates duplicate accounts under false names and to comply with Anti-Money Laundering (AML) requirements.

 

Funding

In order to begin trading, you will need to fund your account. Currently, our clearinghouse partner CX Clearinghouse, L.P. only supports direct banking transfers via ACH. We are working with CX Clearinghouse to provide more funding options in the future.

Deposits

You may transfer money from your bank account directly into your trading account. To initiate a deposit request over ACH (Automated Clearing House) please click here. By doing this you are authorizing the funds to be pulled from your bank account. It may take 3-5 days for the funds to clear and be deposited into your TradeWx account. If you are sending over $500 and want the funds to clear faster please ask us for Bank Wire instructions

Withdrawals

You may transfer money out of your trading account directly into your bank account. Withdrawals are processed over ACH only.

Please note: While trading on TradeWx is generally available 24/7 funding follows standard banking work days.

There is no minimum funding amount and CX Futures Exchange charges no fees for deposits and withdrawals at this time.

 

Trading

Trading in Daily Aggregate Snow Index Contracts is available in general 24/7 on TradeWx.com make sure you have funded your account first, and then head over to the trading page.

 

 

Weather Products

TradeWx plans to offer a variety of weather products that you can trade on. We will b e rolling out different products over time. Currently, we have made available trading in Daily Aggregate Snowfall. This allows you to predict the amount of frozen precipitation that will fall on a particular day at the trading location of your choice and place a trade accordingly.

Trading in Rain, Low and High Temperature will be available shortly.

During the hurricane season in the North Atlantic. Typically June 01st to November 30th we offer Tropical Storm Landfall trading where you can predict where the named tropical storms in the Atlantic will make landfall.

Tropical Storm Landfalls

Please review the full rules for the landfall contracts here. Below is a summary of the information in the contract specifications, however, should there be any inconsistancy or disconnect between what's outlined here and the contract specs, the specifications themselves take precedence.

 

Useful Resources

 

 

AccuWeather – Winter Weather Center 

AccuWeather - US winter forecast for 2018-2019 season 

AccuWeather – Weather Forecast Maps

NWS - NERFC Snow Information Page 

National Weather Service -  National Operational Hydrologic Remote Sensing Center 

NOAA - Multisensor Snow/Ice Cover Maps: Northern Hemisphere

National Weather Service – Northern Hemisphere Snow Cover 

Snow Depth Map from NOHRSC 

 

Quick Facts

  • Season
    • Many locations in the Northern 48 States and higher elevations have already seen their first snow. In some locations snow has been accumulating and some ski mountains have opened early.
    • It is expected that we will be seeing regular snowfall through Mid-March or April 2019.
  • The top 5 Snowiest Cities in the US are (AccuWeather):
    1. Cleveland, OH - Av of 67 or more inches of Snow per year
    2. Minneapolis, MI - Av of 54 or more inches of Snow per year
    3. Denver, CO - Av of 53 or more inches of Snow per year
    4. Milwaukee, WI - Av of 46 or more inches of Snow per year
    5. Boston, MA – Av of 43 or more inches of Snow per year
  • The most snow measured in 24 hours was 75.8 inches, which fell in Silver Lake, CO April 14-15, 1921 (NWS).
  • All 50 states have recorded snowfall. In Hawaii, snow on the tallest volcano summits every year, and light snow (mainly trace amounts) is an almost yearly occurrence in northern Florida (NWS)

 

Trading FAQ

What is TradeWx about?

CX Futures Exchange, L.P. and particularly TradeWx allow trading the weather. TradeWx offers Daily Aggregate Snow Index (DASI) contracts. Coming soon! Contracts on Rainfall, Temperature and other weather phenomena.


What can I trade now?

You can trade by making predictions about the aggregate amount of snow (frozen precipitation) that will fall during a 24 hour period on a particular date and location in the continental USA.


Why should I trade weather?

To take advantage of your weather knowledge.  The Contract was also designed to mitigate economic risk arising from adverse weather.

How can I trade it?

Select from the list of locations on the Continental US map presented on TradeWx to predict the snowfall amount if any you think will be measured.

Please note: Participants can also select – no snow option.

 

Am I able to trade?

To be eligible to trade and place orders you must be a duly approved exchange participant at CX Futures Exchange, L.P. You must be an individual who resides in the USA or a US based legal entity.  Application is free and is available here

Who cannot trade?

If you do not have a duly active and funded participant account you would not be able to place orders. If you are not a US resident or a US legal entity we will not be able to process your participant application at this time.

How do I start?

CX Futures Exchange, L.P. Participant Application is free and is available here. Once your application is submitted you can fund your account.  Upon application approval and funds clearing (ACH: 3-4 business days; Wire: same day), you will be ready to submit orders.  

Can I practice first?

You can sign up for the practice trading game – Forecaster Challenge at https://forecasterchallenge.accuweather.com.  You start with 25,000 AccuDollars, you can convert increments of 50,000 AccuDollars into $10 cash in a TradeWx account (up to a total of $100).

What do I need?

Make sure you have a funded TradeWx participant account at CX Futures Exchange, L.P.

Where can I find more weather data?

You can follow the Storm forecasts and advisories published by the National Hurricane Center, or follow the in depth and constantly updating coverage by AccuWeather. For more resource please check the Useful Resources section on this page. 

Get an edge with AccuWeather Pro!  Try it free for 4 weeks. 

Do you have Demo-trading?

CX Futures Exchange does not offer Demo trading at TradeWx. However, you can sign up for the practice trading game – Forecaster Challenge at https://forecasterchallenge.accuweather.com.  You start with 25,000 AccuDollars, you can convert increments of 50,000 AccuDollars into $10 cash in a TradeWx account (up to a total of $100).

 

Snow Trading FAQ

What Snow trades can I make?

You can trade approximately how many inches of snow will fall in the location of your choice during the day you select – measurement day. We call the aggregate snow level selected for the trade – strike level.

Can I trade just about any snowfall level?

Trade levels for snowfall are discreet and follow this scale:

#

1

2

3

4

5

6

7

8

9

10

11

12

13

Snow  (Inches)

0.1

1

2

3

4

5

6

7

8

9

10

11

12

You can also trade “no snow has fallen” or 0 inches.

 

Can I select a trade level between two of the levels displayed like 3.5, 4.7, 6.2 inches?

You can only submit trades for the levels offered on the interface.

How is snowfall measured?

Snow is measured to an accuracy of 0.1” and includes ice pellets. Anything less than 0.1” of Snow is reported as trace and considered “no snow has fallen” for a location. Snow trades can be made at 0.1” and then in 1” increments. The maximum depth of snow available to trade is 12”. (0.1, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)

What is considered SnowFall for the purposes of my trades?

The total frozen precipitation measured, typically in tenths of inches, by specific measuring stations during each station’s local calendar day.

What is the smallest change in measurement of SnowFall?

Typically SnowFall (frozen precipitation) is measured to the 1/10 of an inch.

I see snow in the air and my trade was settled at zero, how come?

Frozen precipitation less than 0.1”, including “trace” or similar reports of frozen precipitation that are insufficient for measurement will result in zero (0) and hence only trades of “no snow has fallen” will be successful in such case.

How is my trade payout determined?

If you traded that there will be “No snow” your trade will only win if during the calendar day you are trading there was no frozen precipitation or the frozen precipitation was less than 0.1 inch. In any other case you would get 0.1 times of your at risk amount back excluding fees. 

If you traded that 3 inches of snow will fall, your trade will be winning if there is frozen precipitation recorded during the calendar trade (measurement) day: i.e. If you trade that New York City will get 3 inches of snow on Tuesday, Dec 18th your trade will be successful if 3 or more inches of snow are reported by the KNYC weather station for the period between midnight 00:00 local time on Tuesday and 23:59:59 local time on Tuesday. If during that period there was less snow reported your trade for 3 inches or more will not be successful. 

Who determines if my trade is successful?

Trades settlement is based on data published in the Climate Report (“CLI”) and Preliminary Local Climatological Data (“CF-6”) reports by the National Weather Service (“NWS”). CX makes no warranties with respect to the accuracy of the data published by the NWS and in its discretion may use other public and private weather reporting sources to determine the daily aggregate frozen precipitation levels for the purpose of this game, when doing so is in the best interest of the marketplace.

What do I get if my trade is successful?

If your trade is successful you do get a payout. In general the earlier you make the trade and the closer your trade level is to the actual measured aggregate frozen precipitation level for that day is the larger the payout.

How is the price of one contract determined?

Making a trade involves picking a location, date and trade level. In general making trades for the furthest measurement date is least expensive and the price to buy a contract rises as the date nears.

How is the trade price to buy a contract determined and how does it change?

The trade price to buy a contract is lowest for trading the date furthest out that would be a measurement date of Today + 7Days. i.e. if today is Monday that would trading for Next Monday. Single trade for that date costs $1 per contract. For every day closer the trade cost increases by $0.25. Here is a scale for your convenience:

 

Current Day

 

 

 

 

 

 

 

Days Count

1

2

3

4

5

6

7

8

Contract Price
(Excluding Fees)

N/P*

$2.50

$2.25

$2.00

$1.75

$1.50

$1.25

$1.00

 * The Current day is labeled N/P as you cannot place a trade for the current day.

 

What is the cost of making a trade?

Exchange Fees are assessed and collected per trade according to the following table:

 

Table 1

Trading Days
prior to Final
Settlement

Contract Premiumand
Original Margin
per Contract

Per Contract
Exchange Fee

7 or more

$1.00

$0.02

6

$1.25

$0.03

5

$1.50

$0.04

4

$1.75

$0.05

3

$2.00

$0.06

2

$2.25

$0.08

1

$2.50

$0.10

 

Who determines the price of trades?

Trade prices are calculated automatically based on the length of time between current date and measurement date.

What is the cut off time at which the contract price changes to the next level?

Although the TradeWx market is generally open for trading 24/7

Is there a Market Maker in TradeWx?

No trade cost is calculated automatically for all participants and trade pools are distributed proportionally based on success, size and closeness of the trade to the actual aggregate measured frozen precipitation level for the day.

How is the size of the trade pool determined?

The size of the trade pool is determined by the number of trades submitted for this measurement date and location. The pools size can change from the date it opens for trading till 5pm on the day prior to the measurement date, when no more trades for this date will be accepted.

How can I make more on my trades?

Strive to buy contracts at the lower price by trading as far out into the future as possible and try to trade as close to the actual aggregate measurement level as possible while not exceeding it.

What is the most I can make on a trade?

If your trade is a successful you will generally get your investment of AccuDollars back plus an additional payout based on the size and distribution of the pool of trades on that day in that location.

Note: sometimes trades will yield a partial payout resulting in overall loss for the trade.

What is the least I can make on a trade?

In general if the pool is small and everyone is right you would expect to get back the amount of AccuDollars invested less exchange fees. 

If your trade is not successful or generally right but your strike is far from the measurement you are not going to lose the entirety of your “at risk” amount, but your payout may be very small.

What data is used to validate if a trade is successful?

Data published in the Climate Report (“CLI”) and Preliminary Local Climatological Data (“CF-6”) reports by the National Weather Service (“NWS”)

When I make a trade for a particular city where is the snowfall measured in that city?

The reference weather station is usually near the main city airport.

What cities can I make snowfall trades for?

    1. New York (Central Park), NY
    2. Chicago, IL
    3. Philadelphia, PA
    4. Washington, DC
    5. Boston, MA
    6. Detroit, MI
    7. Minneapolis- St. Paul, MN
    8. Denver, CO
    9. Cleveland, OH
    10. St. Louis, MO
    11. Pittsburgh, PA
    12. Kansas City, MO
    13. Salt Lake City, UT
    14. Columbus, OH
    15. Buffalo, NY
    16. Dallas-Fort Worth, TX
    17. Omaha, NE
    18. Seattle, WA
    19. Portland, OR
    20. Spokane, WA
    21. Billings, MT

 

Can I make trades for foreign cities?

Not at this time.

How many days ahead can I make trade for?

You can make a trade for up to 7 days ahead.

Can I make a trade for today?

No, but you can make a trade for the next calendar day up to 5pm ET today.

Do meteorologists have an unfair advantage when trading at TradeWx?

TradeWx is open to anyone willing to engage. That said in-depth understanding of the weather and weather forecasting could help users in selecting accurate trades. Weather is a both global and local so TradeWx allows participants with local insight to show it off.

What is the best weather forecast to use when preparing to make a trade?

While we make no specific recommendation as to what weather forecasting tools or services you should use we are displaying forecast levels from the National Oceanic and Atmospheric Administration (NOAA) Global Forecast System (GFS), AccuWeather and The European Centre for Medium-Range Weather Forecasts (ECMRF) for your reference and free of charge.

When can check if my trade has settled?

All trades settle by 12 (noon) on the day after the measurement date. After 12:01 you should be able to check you past trade history and see if you have gotten a payout.

How many trades can I make?

You are welcome to submit trades as often as you like for as much as you like and for as many dates and location as you like, as long you don’t run out of funds in your TradeWx account.

Can I cancel a trade I already made?

Once your trade has been accepted by the system and recorded in you active trades you cannot cancel it and it will stay on until settlement. You could modify a trade already made. For more information check How can I modify an existing trade?.

How can I modify an existing trade?

You can modify a trade already made within certain limits. First of all, you can only modify a trade already placed. You can only switch strike level up or down within the same location and date. i.e. You If you just placed a trade and decided that you want to switch strike – go to “Portfolio” look up the trade in our list of open trades. Click on “Modify” and make the change. When doing so you will be cancelling your previous order while submitting a new one for the new strike. When doing so you will get a credit for the price of the order ex any exchange fees.

Can I get out of trade before settlement?

You cannot exit or close an existing trade before settlement, but you can add or modify your position into this date/location if you think this will benefit you and have extra funds available. If you chose to add to your position you need to be mindful of the fact that the price per contract may have changed and there will be extra exchange fees.

Why is my balance going down every time I make a trade?

When a trade is confirmed the exchange blocks a specific amount of your funds which reflects the maximum “at risk” amount you need for the trade. Once you submit the trade you commit the relevant amount of Dollars to the pool of for this location and date.  Margin funds cannot be used in multiple trades at the same time.

What happens if I run out of funds?

Trading is inherently risky and may not be suitable for everyone. We recommend you carefully review your financial situation prior to engaging in trading. If you do run out of funds, you can add more funds via bank wire, which would normally clear the same day or within 24 hours or you can initiate a funding request, which will clear over ACH and may take 3-5 days until funds are posted in your TradeWx account.

How do I know how big is the current pool for the particular location and date I am interested in?

The interactive map on TradeWx indicates the more active locations and when you select a location the current size of the pool is indicated at the top of the order ticket.

How can I see the distribution of trades in a particular pool?

When you open the order ticket the relative number of contracts purchased on each strike is indicated by height of the bar displayed on that strike.

Can I get notices every time the pool size increases for a location and date where I have a trade/s for?

The pool size increases with every next trade and sending notices is impractical. Please check your location and date via the TradeWx interface as often as you like and you will be able to see how it changes.

Can I sell my trade after I have made it?

You can only make trades and you can only stay with them until settlement. TradeWx does not feature secondary market for existing trades yet.

How can I see the locations and dates with the largest current pools of trades?

The interactive map on TradeWx indicates the more active locations and when you select a location the current size of the pool is indicated at the top of the order ticket.

How often does the price per contract change?

The price per contract for a particular measurement date changes every day at 5pm by going up $.25.

What determines how much the trade cost changes over time and from one trade level to the next?

This is calculated automatically.

Can I set an alert to get notified when the payout on my trade changes?

We may be able to do that in the future, but this feature is not available yet.

 

For additional help, please Contact Us