• Robinhood at the moment presents contracts for customers to guess on the result of the 2024 US election.
• Eligible U.S. residents can buy a “Sure” contract and settle after certification in January.
• Rivals resembling Kalshi and Polymarket additionally supply comparable extremely sought-after prediction markets.

In style funding app Robinhood has expanded considerably into prediction markets by launching a contract that enables customers to guess the result of the 2024 US presidential election.

The transfer places Robinhood in direct competitors with established prediction platforms like Calci and Polymarket, which provide comparable political occasion contracts.

Robinhood US Presidential Election Contract

As of this week, Robinhood Derivatives customers can buy “sure” contracts that predict their chosen candidate will win the presidential election. The worth of every contract is set by demand and may attain as much as $1.00.

If the prediction seems to be correct, subscribers will obtain $1.00 after the U.S. Congress certifies the election outcomes on January 6, 2025. There isn’t any payout if the prediction is unsuitable.

Robinhood limits participation to U.S. residents with retail funding accounts who qualify for sure options, resembling margin investing and stage 2/3 choices buying and selling. This restriction is according to the platform's dedication to making sure customers have entry to high-risk monetary merchandise.

Along with hypothesis, Robinhood presents customers flexibility by means of the choice to shut out positions earlier than the election outcomes are recognized. This course of entails buying opposing “no” contracts to offset current “sure” positions, permitting customers to scale back potential losses or primarily based on evolving market sentiment. You can too lock in your income.

Nonetheless, Robinhood doesn’t permit customers to carry “sure” positions for a number of candidates on the similar time, and that is supposed to scale back complexity and guarantee readability in customers' portfolios. That is the coverage.

Political hypothesis market expands

Robinhood's entry into prediction markets comes amid rising public curiosity in political hypothesis.

Simply earlier this month, a federal appeals courtroom upheld a ruling that allowed Kalsi, a distinguished competitor, to supply election-related contracts. Kalsi's latest success on the App Retailer highlights this rising demand, because the platform has risen to the highest of the monetary class, surpassing even giants like Fb and Uber.

Karshi presents excessive liquidity and permits giant trades with out affecting market costs. The corporate's CEO, Tarek Mansour, emphasised this level in distinction to Robinhood's new contracts, which have smaller liquidity constraints.

In the meantime, platforms like Polymarket and PredictIt additionally supply election consequence contracts that fluctuate in worth primarily based on consumer sentiment and real-time developments.

By including occasion contracts to its service, Robinhood not solely expands the choices obtainable to its customers, but additionally faucets right into a sector of monetary markets that’s pushed by present occasions and speculative pursuits, with political penalties for retail traders. is a brand new frontier.