{"id":253341,"date":"2026-08-11T15:05:50","date_gmt":"2026-08-11T19:05:50","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?post_type=glossary-terms&#038;p=253341"},"modified":"2026-08-18T10:40:21","modified_gmt":"2026-08-18T14:40:21","slug":"heating-degree-day","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/heating-degree-day\/","title":{"rendered":"Heating Degree Day"},"content":{"rendered":"\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/ndcdyn.interactivebrokers.com\/mkt\/?src=glossGenAcc&amp;url=%2FUniversal%2FApplication\" target=\"_blank\" rel=\"noreferrer noopener\">Open Account<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A heating degree day, abbreviated HDD, measures how far a day&#8217;s average temperature falls below a 65\u00b0F baseline, and is used as a proxy for demand for space heating. A day averaging 45\u00b0F accumulates 20 heating degree days, and seasonal totals are summed across the heating season. Because utility and natural gas revenues track heating demand closely, HDD indices underpin much of the weather derivatives market and are a natural underlying for contracts intended to smooth weather-driven revenue variability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/futures\/forecast-contracts-as-a-tool-to-manage-non-catastrophic-weather-risk\/\">Forecast Contracts as a Tool to Manage Non-Catastrophic Weather Risk<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/prediction-market\/fair-value-weather-climate-monday-august-3-2026\/\">Fair Value Weather &amp; Climate \u2014 Monday, August 3, 2026<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/ibkr-climate-energy\/energy-expenditure-implications-of-next-day-temperature-forecasts\/\">Energy expenditure implications of next-day temperature forecasts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A heating degree day, abbreviated HDD, measures how far a day&#8217;s average temperature falls below a 65\u00b0F baseline, and is used as a proxy for demand for space heating. A day averaging 45\u00b0F accumulates 20 heating degree days, and seasonal totals are summed across the heating season. Because utility and natural gas revenues track heating demand closely, HDD indices underpin much of the weather derivatives market and are a natural underlying for contracts intended to smooth weather-driven revenue variability.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13272,13251],"class_list":["post-253341","glossary-terms","type-glossary-terms","status-publish","traders-glossary-trading-terms-h","traders-glossary-trading-alphabet"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"Abbreviated HDD, measures how far a day&#039;s average temperature falls below a 65\u00b0F 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