Trading

What is the difference between purchasing and trading?

When you enter an order using the TradeWx website, you are not "purchasing" (or selling) something tangible. When you make a purchase (or sale) using this site, you are actually entering into a "buy" or "sell" trading transaction on an exchange weather market.

What does it mean to trade through the TradeWx website?

TradeWx lets you connect to premier weather protection markets, including the Cantor Exchange weather markets, while also supplying curated weather information and tools to support you in making weather-related decisions.

Through the TradeWx website, you can purchase a unique type of financial protection on an exchange weather market. When you purchase protection for a specific zip code through the TradeWx website, you will be entered into a contract on an exchange. If the next named storm to make landfall lands within a 75-mile radius from the centroid of your selected zip code, you will receive a payout based on the amount of protection that you purchased for the given zip code area.

How do I make a purchase or place an order?

Ready to purchase protection against the next upcoming storm? Placing an order on TradeWx involves 5 simple steps!

Step 1: Select your desired location on the map.

In the top left corner of the map, you can search for a specific address or zip code using the search bar or you can select a location using the target next to the search bar.  To use the target feature, click on the target symbol and select your desired location on the map. Note, you can only select a location on the map that is within the green-highlighted area along the east coast of the United States. The red circle around any selected location represents the 75 mile radius in which a named storm must make landfall for you to receive a payout.

Let's say you want to purchase protection for your vacation home in Tampa, FL. You can search for Tampa using the search bar in the top left corner of the map or you can use the target to pinpoint Tampa on the map.

Don't forget to take advantage of the helpful weather tools to the left of the map! You can view the activity of current, potential, or even past storms and their impact near your selected area. Using the Show Past Storms at My Location tool, below you can see Tropical Storm Henri's (2003) track, including where it made landfall near Tampa, FL.

Step 2: Choose whether you would like to Buy or Sell protection from the drop-down menu to the right of the interface.

In this example, since you are interested in purchasing protection for your vacation home, you would select Buy from the drop-down menu.

Step 3: Determine how much protection you would like to purchase (or sell) and enter that value in the $ field next to Buy/Sell.

Let's say you want to purchase $1,000 worth of protection for the 33602 zip code in Tampa, FL. Enter 1000 in the $ field.

Step 4: Evaluate your premium price.

The trading interface will display a premium based on the amount of protection being purchased and the best price available in the market for the selected location; the premium will be left blank initially if no price is available for the given location. If you would like to add or change the premium price, you can do so by entering a new value in the My expected premium to Pay/Receive field. Note, your premium must be less than your protection value.

In this case, the interface defaulted to a premium of $80, based on the best price available in the market for the 33602 zip code location. If you wanted to change the premium price, you can do so by simply typing your desired premium price in the My expected premium to Pay field.

Step 5: Click the Review button to submit your order request.

A confirmation window will appear, look over your order details and click Place the Order to confirm your order request. You can review your pending orders and protection you've purchased on the Orders & Protection tab under the My Account menu.

Can I close out of a transaction position early?

Yes. Whether you are looking to take an early profit or you want to minimize your loss, you can partially reduce or completely close a transaction position prior to settlement.

Step 1: Under the My Account menu, go to the Orders & Protection tab and find the transaction you would like to close early listed in either the Protection Purchased or Protection Sold section.

In this example, let's say you would like to reduce part of the $80,000 worth of protection purchased for the 23510 zip code in Norfolk, VA. 

Step 2: Click the Reduce button next to the transaction, which will open the trading page to let you enter a new transaction that is opposite your open transaction.

If you purchased protection and you are trying to close the transaction early, you would open a Sell transaction. If you sold protection and you are trying to close the transaction early, you would open a Buy transaction. 

Since you purchased protection for the 23510 zip code in Norfolk, VA, you would be opening a Sell transaction.

Step 3: Determine how much protection you would like to reduce your initial open transaction by and enter that value in the $ field next to Buy/Sell on the right side of the interface.

Note, when you click the Reduce button next to your initial transaction, the map tool will populate this $ field with your entire protection amount. If the protection amount for your close transaction is the same as your initial transaction, your initial position will be eliminated. If the protection amount you enter is less, your open transaction position will be reduced by that amount.

Let's say you would like to reduce the $80,000 of protection you purchased for Norfolk, VA by $10,000, leaving you with $70,000 of protection for that area. Enter 10,000 in the $ field.

Step 4: Evaluate your premium price.

The trading interface will display a premium based on the amount of protection being purchased and the best price available in the market for the selected location; the premium will be left blank initially if no price is available for the given location. If you would like to add or change the premium price, you can do so by entering a new value in the My expected premium to Pay/Receive field. Note, your premium must be less than your protection value.

Because there was no price available for the Norfolk, VA location, you would enter your own premium price, let's say $700, in the My expected premium to Receive field

Step 5: Click the Review button to submit your close order request. 

A confirmation window will appear, look over your order details and click Place the Order to confirm your close order request. You can review your the status of your close order request and initial transaction by going to the Orders & Protection tab under the My Account menu.

Can I enter my own price for a transaction?

Yes. Through the TradeWx website, you can name your own premium for any transaction. Just modify the premium amount in the My expected premium to Pay/Receive field on the left side of the trading interface. 

Please note that if you reduce the premium amount, it will increase the likelihood that your transaction is not filled successfully.

Can I have more than one transaction open at a time?

Yes. You can hold numerous transaction positions on varying zip codes to expand or customize your protection area.

Is there a limit to the number of transactions I can open per day?

No. There is no limit to the number of transactions you can open per day, as long as you have enough funds available in your trading account to cover the cost of the premium.

What if my order does not get filled right away?

If your order does not get filled right away, your order will sit open on the order book until one of the following events occurs:

  • Your order is filled at your requested price
  • You cancel your order
  • There is a settlement

You can review all of your open orders in the Pending Orders section on the Orders & Protection tab under the My Account menu.

Can I cancel a pending order?

Yes! You can cancel the outstanding amount of any open order that has not yet been completely filled.

Under the My Account menu, go to the Orders & Protection tab. Find the order in the Pending Orders section, and click the Cancel button next to it. A confirmation window will appear, click Cancel Order to submit your request. 

How do I contest an outcome?

For Cantor Exchange users, if you disagree with the settlement of a transaction position, please contact Cantor Exchange Participant Support.