Robinhood is broadening its choices to draw extra customers by introducing funding contracts linked to the result of the November US Presidential election, in keeping with an Oct. 28 assertion.
Occasion-based derivatives buying and selling permits buyers to take a position on particular occurrences, resembling election outcomes or financial coverage bulletins, with out buying associated property. In accordance with the agency, its contracts will permit individuals to interact in real-time decision-making and unlock a brand new asset class that democratizes entry to occasions as they unfold.
Robinhood said that its election-linked contracts can be open for buying and selling till Nov. 8, with costs fluctuating between $0.02 and $0.99, pushed by market sentiment. As Election Day approaches, the worth of the contract for the successful candidate will rise, paying out near $1.
The agency continued that every dealer’s successful could be paid out on Jan. 8, 2025, after the presidential outcomes are licensed by the US Congress on Jan. 6, 2025.
The product can be rolled out to a restricted variety of US-based prospects beginning right now.
Elevated competitors for Polymarket
Robinhood’s entry into the election contract market brings added competitors to an area dominated by the decentralized betting market Polymarket. Different platforms, resembling BET on Solana and Trump Prediction Market Perpetuals on dYdX, supply election-related event-based choices, creating an more and more aggressive market.
In the meantime, Polymarket has currently confronted added scrutiny over unproven considerations about market manipulation. Market observers have famous an increase in large-scale wagers favoring the Republican candidate, Donald Trump. Nevertheless, market participation is often laborious to provably attribute to manipulation somewhat than pure free market mechanics.
CEO Shayne Coplan has addressed these allegations, defending Polymarket’s integrity and dismissing considerations about manipulation, though some market observers stay skeptical. He said:
“Polymarket is strictly non-partisan. We get informed we’re Dem operatives and MAGA, relying on the day. Sadly the story is way much less juicy, we’re simply market nerds who assume prediction markets present the general public with a a lot wanted different knowledge supply.”
As of the newest knowledge, Polymarket’s election final result market has seen roughly $2.5 billion in quantity. Present odds recommend a 65% likelihood of successful for Trump, whereas his opponent Kamala Harris holds a 35% odds.
