Robinhood has introduced a new feature — election event contracts —allowing users to speculate on the outcome of key events, starting with the 2024 US presidential election.
Robinhood Launches Election Event Contracts
The inaugural event contract will focus on the 2024 U.S. presidential election between Kamala Harris and Donald Trump.
Event contracts allow traders to bet on a specific outcome. In the case of the 2024 election, users can purchase a contract for either Harris or Trump. If the chosen candidate wins, the contract will be worth $1.00. If the candidate loses, the contract becomes worthless.
To participate in event contracts, users must have a Robinhood Derivatives account, which requires certain eligibility criteria such as a US citizenship and an active Robinhood Investing account with margin investing enabled or options trading approved.
The contracts are traded through Robinhood’s partnership with ForecastEx, and a minimal $0.01 commission is charged per contract. In addition, contracts can be traded up until January 5, 2025, with final settlements on January 8, following the certification of election results by Congress.
The launch represents Robinhood’s first foray into event-driven trading, a space where market volatility is expected to mirror the shifting election landscape.
Trading hours for the 2024 election contract will vary, with extended hours during election week, while Robinhood charges a $0.01 commission per contract, and the exchange, ForecastEx, adds an additional $0.01 to the contract price.
