Current location - Trademark Inquiry Complete Network - Futures platform - Prediction of output based on cooling day-to-day conversion model
Prediction of output based on cooling day-to-day conversion model
Expected results of cold days model.

Cold weather: the average temperature in a day exceeds 65 degrees Fahrenheit, and people begin to use air conditioners to cool their buildings. The price of summer weather derivatives trading is based on an index consisting of monthly cooling days (CDD). The settlement price of weather futures contracts is calculated by adding up the CDD value of one month and then multiplying it by 20 dollars.

Index of days when the temperature exceeds 65 degrees Fahrenheit. The trading of things that need to cool off in summer is based on this index, and the trading of weather futures is also related to it.

Source: investopedia.