A weather forecast is really just a probability dressed up as a number. Weather prediction markets take that same idea and let you trade it directly, buying a “yes” or “no” contract on whether a specific temperature, storm, or weather event occurs.

Coverage ranges from something as narrow as tomorrow’s high in a single city to season-long questions about hurricane activity. Since weather data is public and constantly updated, these markets tend to move quickly, and there’s rarely a shortage of new trading opportunities.

1
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Top weather prediction market platforms

Coverage and depth vary more here than in other categories, so here’s how the main platforms compare.

PlatformBest ForWelcome Offer
FanDuel PredictsSimple contract pricingRegister to Unlock Offer
PolymarketDeepest weather market selection$50 Bonus on First Deposit
OGWide category mix, social trading featuresTrade $10, Get in Bonuses
Crypto.comTraders who prefer a crypto-based platformEarn up to 1 BTC
DraftKings PredictionsOwn exchange technologyTrade $5, Get $200
KalshiMost granular temperature and hurricane contractsN/A
RobinhoodBeginners already using the appN/A

The above platforms also feature many prediction markets surrounding politics, entertainment, sports, the economy, and more.

What are weather prediction markets?

A weather prediction market is a place where people trade contracts based on the outcome of a real weather event. Each contract asks a specific yes-or-no question, such as “Will the high in Chicago hit 90 degrees today?” or “Will a named storm make landfall in Florida this week?”

You buy a “yes” contract if you think the event will happen, or a “no” contract if you think it won’t. The price of each contract ranges from 1 cent to 99 cents, and that price reflects what other traders think the odds are. A contract trading at 80 cents is telling you the market sees roughly an 80 percent chance of that outcome.

If you’re right, your contract pays out at $1. If you’re wrong, it pays out at nothing. Because the risk is capped at what you paid, it plays out differently than trying to hedge weather risk any other way.

Is trading on weather markets legal?

Yes, in the US, trading on weather outcomes is legal on regulated platforms such as Polymarket and OG. These platforms operate under the Commodity Exchange Act and are regulated by the Commodity Futures Trading Commission (CFTC), which treats these contracts as regulated derivatives rather than gambling products.

Weather contracts sit in a slightly different spot than, say, sports or politics, since insurers and commodities traders have used weather derivatives for years in a more institutional setting. Retail platforms have made that same idea accessible to everyday traders. Availability can still vary by platform and state, so check before signing up.

Weather platforms compared

Prediction market platforms all take a different approach to weather trading, and coverage depth varies more here than in other categories.

FanDuel Predicts

$100
In Predicts Bonus
Top Features
  • Get $100 in Predicts Bonus When You Trade $1 for 5 Days

  • Make Predictions on Real World Events Right in Your Phone

  • Trade on Sports to Culture, Financials, Crypto and More

At last check, FanDuel Predicts did not have a category for either weather or climate markets. The platform is still relatively new, however, and continues to build out its lineup, so it is worth keeping an eye out for these markets perhaps being added down the road, especially if you’re already using the app for sports or other categories.

Polymarket

$50 Bonus
On First Deposit
Top Features
  • Deposit $10, Get a $50 Trading Bonus

  • Live Trade with the Biggest Payouts at the Largest Prediction Market in the World

  • Use Bonus Code: TRADELSR

Polymarket runs one of the most comprehensive weather sections around, with markets on daily temperatures in major cities, hurricane formation and landfall, and even longer-running questions on global weather patterns. It’s a strong pick if you want more than just the occasional storm contract. Funding runs through USDC (a stablecoin pegged to the US dollar), so a crypto wallet is part of the setup.

OG

Trade $10, Get $10
Sign Up, Deposit, and Trade with OG
Top Features
  • Huge Range of CFTC-Approved Markets (Sports, Tech, and More)

  • Compete with Others & Climb the Leaderboards

  • No User Limiting on Trades

OG folds weather into its broader climate category, alongside its other markets. Contract layouts stay simple, and the social feed showing how other traders lean on a given forecast can be a useful gut check before you commit to a position.

Crypto.com

Earn up to 1 BTC
In CRO Rewards
Top Features
  • Complete a Task in the Crypto.com App to Unlock up to 1 Bitcoin Worth of CRO Rewards

  • America’s All-In-One Trading Platform

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Crypto.com is another site that offers a variety of market categories, though its Climate category is relatively light. Right now, the platform has a market inviting you to take a position on where 2026 will rank among the hottest years on record, but no other daily temperature markets or anything involving weather-related events.

DraftKings Predictions

Spend $5+, Get $200
In Trading Bonuses
Top Features
  • Get $200 in Bonuses Paid Over 21 Days

  • DraftKings is Now Available Nationwide

  • Browse Markets like Sports, Crypto, Tech & More

Weather is one of the newer additions across the DraftKings Predictions lineup, and coverage is still catching up to what you’ll find on a more weather-focused platform. If DKeX continues to expand, this is one of the categories likely to grow along with it.

Kalshi

Kalshi‘s weather section is the most detailed of any regulated platform, breaking down a single city’s forecast into several overlapping temperature brackets rather than a single broad call. Beyond daily forecasts, it runs standing categories for hurricanes and other natural disasters, which makes it a strong option if you want precision over a broad guess.

Robinhood

Robinhood added weather contracts through its Kalshi partnership, so daily temperature and storm markets show up right next to your stocks and crypto. It’s convenient if you’re already in the app, though the selection mirrors what Kalshi lists rather than something built independently.

Types of weather markets you can trade

Weather prediction markets cover more ground than a simple hot or cold call. Here are the categories you’ll run into most often.

Daily temperature brackets

These markets ask whether a city’s temperature will fall within a specific range on a given day. Because they settle quickly, they’re some of the most actively traded weather contracts day to day.

Precipitation and snowfall

These markets cover whether it will rain or snow at a specific location, sometimes to a measurable amount, within a set time window.

Hurricane and storm activity

These contracts track storm formation, paths, and landfalls, along with broader seasonal questions such as the total number of named storms. Trading volume tends to spike as a storm approaches a populated coastline.

Natural disasters

Beyond storms, some platforms list markets on earthquakes above a certain magnitude and tornado counts over a given stretch, often broken into numerical brackets like “more than 150 tornadoes in the US this month.” These tend to see the most activity during spring severe weather season.

Seasonal and climate trends

These longer-running markets ask about broader patterns, such as whether a winter will end up warmer than average or whether a particular year sets a new global temperature record. Some platforms go even further, listing contracts on things like Arctic sea ice extent or monthly CO2 readings, which are aimed at traders who follow climate science closely and are comfortable holding a position for months at a time.

How contract settlement works

Every weather prediction market contract resolves against a specific, verifiable data source, most often an official reading from a source like the National Weather Service. The market page usually names the exact station or data feed used, along with the precise time the reading is taken.

Weather settlement tends to be more objective than something like a mention market in pop culture, since a recorded temperature or confirmed landfall isn’t really up for interpretation. Still, it’s worth double-checking which station or source a contract uses, since readings can vary between nearby locations.

A common trap: you check the weather app and see a high of 91 degrees downtown, so you buy “yes” on a 90-degree contract, only to have it settle against the official airport station miles away, which read a few degrees cooler. You’re not trading the weather you feel; you’re trading the specific number a named station reports.

How to trade on weather markets

Getting started is more straightforward than most people expect. Here’s the general process.

  1. Sign up and verify your account: Register on a regulated platform and complete identity verification, typically using an ID and basic personal details.
  2. Deposit funds: Most platforms accept bank transfers or debit cards, while some rely on crypto deposits. Some offer a welcome bonus for new accounts.
  3. Browse weather markets: Look under categories like “Weather,” “Climate,” or a specific city name to find current questions you can trade on.
  4. Buy a contract: Choose “yes” or “no” based on your prediction, and pick how much you want to trade.
  5. Track your position: Forecasts update constantly, so keep an eye on your contracts as the settlement time approaches.

Fees to expect

Most weather prediction market platforms build their fee into the contract price rather than charging a separate flat fee, though this varies by site. Some platforms charge a small trading fee, often around 2 percent or less. You may also incur fees for deposits or withdrawals, depending on your payment method.

These fees are usually clearly listed on the platform, but it’s worth checking before you trade, especially during a major storm, when activity tends to spike.

How accurate are weather prediction markets?

Weather markets tend to be fairly accurate near settlement, since traders can rely on the same forecasting models meteorologists use. A same-day temperature contract, for example, benefits from hours of updated forecast data before it settles.

Accuracy drops the further out you go. A hurricane’s exact path five days out carries real uncertainty, and a seasonal climate question carries even more. Treat longer-running weather contracts with more caution than a next-day forecast.

Tips before you trade weather markets

Weather is more measurable than most other categories, so a little homework goes a long way here.

Keep position sizes modest: Even a well-forecast event can surprise you at the margins.

Understand the exact station or data source a contract uses: Two nearby locations can report slightly different readings.

Lean on short-term contracts while you’re learning: Same-day forecasts are more reliable than a five-day storm path.

Expect volume to spike around major storms: This usually means tighter pricing and more contracts to choose from.

Factor in the fee if you’re trading daily temperature contracts often: Small costs add up over frequent trades.

Weather Prediction Market FAQ

Can I legally trade on the weather in the US?

Yes, through regulated platforms like Polymarket and OG. These operate as federally regulated exchanges rather than gambling operators.

Which weather markets are most active right now?

Daily temperature contracts in major cities and active hurricane markets tend to see the most trading volume, especially during storm season.

How much money do I need to start?

You can start with a small amount, since contracts are priced between 1 cent and 99 cents. Many traders begin with a modest amount to get familiar with how the markets move.