All transactions are governed by the rules of the underlying market. For Cantor Exchange users, you can view the rules of the Atlantic Named Storm Landfall market on the contract rules page of the Cantor Exchange website.
An order is a request to enter into a purchase or sale transaction. If the order is successful, the result will be a position in your account, also called an open transaction on the TradeWx website. For a purchase transaction, this means you will be entitled to a payout if the next storm that makes landfall lands near your selected location; for a sale transaction, you will be entitled to a payout if the next storm that makes landfall does not land near your selected location, or if there is no next landfall before Novermber 30.
If the order is not filled immediately, you will have a pending order in your account because all orders submitted using the TradeWx website are Good Til' Cancelled (GTC), which means that the order will sit open on the order book until one of the following events occurs:
Any order requests that have not yet been filled and are currently sitting on the order book are shown in the Pending Orders area on the Orders & Protection tab under the My Account menu. Once your order has been filled, it will appear in the Protection Purchased or Protection Sold area under the Orders & Protection tab.
When purchasing protection through the TradeWx website, the trading interface will display the 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.
You can modify the premium in the trading interface based on the amount you are willing to pay. If you decrease the amount from the value initially displayed, your transaction may not be completed and your purchase request will be left as a pending order in the order book.
Landfall markets generally close when the next storm makes landfall, or on November 30, whichever comes first. For Cantor Exchange users, see details of the contract rules.
For example, consider the proposition, "Will the next storm that makes landfall land near the 10001 zip code in New York, NY?" This transaction would close when the next storm makes landfall or at the conclusion of the 2016 Atlantic Basin tropical storm season on November 30, 2016, whichever occurs first.
For Cantor Exchange users, if you see a message indicating that a particular location is not available to trade, please contact Cantor Exchange Participant Support.
You can only risk as much money on a position as you have available in your trading account. You should trade only if you are financially able to lose the entire amount of the premium that you have paid.
When you enter a purchase transaction through the TradeWx site, the amount you risk for that position (that is, your premium price) will be immediately deducted from your trading account, this is your margin for that position.