Major trading platform Robinhood has announced the launch of U.S. presidential election event contracts, effectively allowing its users to trade based on their predictions of the election’s outcome.
According to a CNBC report, the Nasdaq-listed trading platform said the election event contracts are now rolling out to a limited number of users, and that customers who trade in these contracts must be U.S. citizens.
Event derivatives trading sees investors buy and sell contracts to speculate on the outcome of specific future events. These events can vary wildly, with some markets allowing users to bet not only on elections or sports events, but also economic data releases, policy decisions, and even geopolitical actions.
These types of derivatives contracts are seen as high-risk instruments, but they have gained significant traction in recent years. Since there’s money on the line for investors, some see them as accurate gauges of the potential outcomes of future events.
Polymarket, the world’s largest predictions market, currently puts the odds of Donald Trump winning the presidential rate at 66%, compared to 34% for Kamala Harris. It also includes markets on the outcome of votes in swing states, and the election’s turnout.
Robinhood’s new platform comes shortly after the company, which became popular among retail investors during the pandemic, introduced futures and index options trading to its mobile app for a fee.
Earlier this month, as CryptoGlobe reported, the company expanded its offering for active traders through the launch of Robinhood Legend, a powerful browser-based desktop trading platform.
The platform is designed with active traders in mind, offering a sleek interface and a highly customizable platform. Users can manage up to eight charts simultaneously in a single window and access various chart types, including candle, line, and Heikin Ashi charts.
The platform supports numerous technical indicators, such as Bollinger Bands, VWAP, and Ichimoku Cloud, along with various drawing tools, enabling traders to perform in-depth technical analysis.
The company committed to expanding its margins and prioritizing “profitable growth” this year.
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