FREE Guide - 5 Chart Patterns You Need to Know!

Cooling Degree Day-- CDD


What does Cooling Degree Day-- CDD mean?

A statistics used to estimate fuel consumption needs to cool buildings.  The amount of energy required to maintain a building’s temperature in the summer is proportional to the accumulated cooling degree days.  It measures both how much (in degrees), and for how long (in days) outside air temperature remain higher than a specific base temperature.

Futures Knowledge Explains Cooling Degree Day-- CDD

Cooling degree day is used to analyze the difference between outside and inside air-temperature data. The inside temperature is usually taken as a standard comfort temperature of 65 F (18 C). A cooling degree day is every degree that the mean temperature is above 65 degrees during a day. So, if the high temperature for the day is 85, and the minimum is 55, the average temperature for the day is 70. That would be 5 cooling degree days (70-65). CDD is an index of fuel consumption and is used in the energy industry in planning building energy consumption.

CDD data is useful while trading weather derivatives.



Get Your FREE Technical Analysis Guide!
Timing is everything, and with this guide, you'll learn how technical analysis can help find the right time to enter and exit your futures trades. Nearly 30 explanations and examples of the most popular technical analysis tools are all in this one handy guide. It's like having a futures trading mentor at your side!