The trading platform, known for its user-friendly interface, has introduced a new feature allowing users to trade contracts based on their predictions of the election outcome.
Per Quartz, this initiative, launched on Monday, enables Robinhood users to engage with the political process by betting on the candidate they believe will win. This development follows a significant legal victory by Kalshi, another trading platform, against the Commodity Futures Trading Commission (CFTC), which had previously attempted to halt trading on election outcome contracts. This ruling has opened the door for Robinhood to enter the political event-based market.
In a post on X (formerly Twitter), Robinhood called it the “Presidential Election Market”.
Presidential election contracts are rolling out to Robinhood customers.
Update your Robinhood app, and check out https://t.co/sxgifdfLjE. Stay tuned for daily updates leading up to election day. pic.twitter.com/EGvdCU5kyD— Robinhood (@RobinhoodApp) October 28, 2024
Also read: Republicans’ Early Voting Surge: What we know from ballots so far
Election contracts will continue to roll out to customers over the next 24 hours. If you haven’t received access yet, please stay tuned ???? https://t.co/zwzMy2I2wP
— Robinhood (@RobinhoodApp) October 29, 2024
Users must be US citizens to participate and receive approval on the Robinhood platform. Once approved, they can trade between two contracts—one for Kamala Harris and one for Donald Trump, Quartz said, adding that this trading is facilitated through Robinhood’s Derivatives unit in collaboration with ForecastEx, marking Robinhood’s expansion into event-driven financial markets.
Robinhood told Quartz, “We believe event contracts give people a tool to engage in real-time decision-making, unlocking a new asset class that democratises access to events as they unfold.”
As per Robinhood, Trump holds a 64%-37% advantage over Harris.
Presidential Election Market update: Oct 28 ????????
Follow the forecast on Robinhood. pic.twitter.com/i3oNSRb5ex— Robinhood (@RobinhoodApp) October 28, 2024
On platforms like Polymarket, bettors are currently favouring Donald Trump as the likely presidential election winner, while Kamala Harris is predicted to win the popular vote. Although betting odds do not always align with actual election outcomes, they offer insight into investor sentiment and speculation as the election approaches.
Also read: Americans in Puerto Rico can’t vote for US president | Their anger at Trump is shaping the race
First Published: Oct 29, 2024 3:50 PM IST
