Niederschlagsderivate

Some traders estimate precipitation derivatives to have a potential which increases even thatof temperature derivatives. Precipitation derivatives can be used both for hedging and marketingpurposes for a diverse number of possible end users. However, the complex way ofmeasuring precipitation, the lack of qualitative data and the feature of precipitation as beinglocally and timely variable make it necessary to develop highly individual contracts to keepthe basis risk low.