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Wiktionary (0.00 / 0 votes) Rate this definition: degree day (Noun). A measure of heating or cooling, computed as the integral of a function of time that generally varies with temperature.iktionary (0.00 / 0 votes) Rate this definition: degree day (Noun). A measure of heating or cooling, computed as the integral of a function of time that generally varies with temperature.
DEFINITION of 'Heating Degree Day-HDD'. The number of degrees that a day's average temperature is below 65 o Fahrenheit (18 o Celsius), the temperature below which buildings need to be heated.The price of weather derivatives traded in the winter is based on an index made up of monthly HDD values.f every day in a 30-day month had an average temperature of 50 o F, the month's HDD value would be 450 (15 x 30). The nominal settlement value for this month's weather derivative contract would therefore be $9,000 (450 x $20).