TradeWx, pronounced "Trade Weather", is a data and technology company that provides weather-related tools and information, including a web-based trading interface to access premier weather protection markets.
TradeWx lets you connect to weather markets at exchanges, where participants can purchase a unique type of tropical storm contract based on where they believe the next named storm will make landfall in the continental U.S. Depending on your circumstances, you may be able to use these contracts for financial protection. Currently, TradeWx has the ability to connect you to the Cantor Exchange (described below). TradeWx hopes to offer you the ability to connect to other weather-focused exchanges as well in the near future.
Cantor Futures Exchange, L.P. ("Cantor Exchange") has been approved by the U.S. Commodity Futures Trading Commission ("CFTC") as a Designated Contract Market. When you make a purchase using the TradeWx website, you are actually trading on the Cantor Exchange weather markets. In this regard, TradeWx is simply acting as a front-end system for the exchange to facilitate the efficiency of such trades. Cantor Exchange establishes the rules of fair trading, offers the electronic trading platform for matching buyers and sellers, and supervises the trading practices of all participants in the market. Cantor Clearinghouse, L.P. ("Cantor Clearinghouse"), a sister company of Cantor Exchange, has been approved by the CFTC as a registered Derivatives Clearing Organization. Cantor Clearinghouse settles all trades between buyers and sellers on the Cantor Exchange and ensures the financial integrity of the transactions. All Participants in Cantor Exchange, once approved, automatically become Participants in Cantor Clearinghouse upon funding of their accounts.
Please visit the Cantor Exchange website for more information.
CFTC stands for the Commodity Futures Trading Commission, a government entity that oversees the operation of United States futures and options markets.
Please visit the CFTC website for more information.
Please go to the trading hours page for more information.
The fees imposed by exchanges may vary from exchange to exchange.
The fees imposed by Cantor Exchange are listed on the trading fees page of the Cantor Exchange website. Currently TradeWx does not impose any additional fees from its users.
Exchanges collect your Social Security number and date of birth when you submit your first deposit request in order to verify your identity and ensure the integrity of all transactions on the exchange.
Exchange protection procedures may vary by exchange.
In the case of the Cantor Exchange, all participant funds are held by Cantor Clearinghouse in segregated member property accounts at Harris Bank, as required by CFTC regulation. All participant funds are protected and completely separate from the funds of Cantor Exchange and Cantor Clearinghouse.
The ability to offer demo accounts may vary by exchange.
In the case of the Cantor Exchange, the Cantor Exchange does not offer demo accounts or practice trading, so these are not available on the TradeWx website.
If the next named storm to make landfall lands within a 75 mile radius from the centroid of the zip code, for which you had made a purchase, you will receive a payout based on the amount of protection that you purchased.
For example, let's say you purchased $2,000 worth of protection for the 28405 zip code in Wilmington, NC and you paid a premium of $400.00. If the next storm to make landfall does land within 75 miles of the 28405 zip code, you will be receive a payout of $2,000.
If the next named storm to make landfall lands outside of a 75 mile radius from the centroid of your selected zip code, you will lose the full premium that you paid for the position. However, you are not subject to any losses beyond the premium that you paid.
For example, let's say you purchased $2,500 worth of protection for the 33101 zip code in Miami, FL and you paid a premium of $250.00. If the next storm to make landfall lands near the 10002 zip code in New York, NY, you would lose your initial premium of $250.00.
Please visit our Contact page for further information.