Sports betting is nothing new — predicting sports results and wagering on the outcome.
But what if you could wager on the outcome of any event? Say, if it’s going to rain tomorrow? Or if the Federal Reserve is going to lower interest rates?
With event contracts, you can do just that.
Event contracts trading lets you speculate on the outcome of a specific event, and these contracts are quickly growing in popularity. But like any investment, event contracts aren’t without risk. So, learn how these assets work and their pros and cons before you get started.
What are event contracts?
Event contracts are a type of financial derivative that lets you trade on the outcome of future events, spanning everything from political elections to sporting events to economic indicators, and almost everything in between.(1)
Derivatives are financial contracts whose value depends on the price of an underlying asset and also include options, futures, forwards and swaps.(2)
"I first tried Kalshi in 2022 and, though I lost money, was impressed by how simple it was to trade event contracts — just Yes or No. Now, I trade on both Kalshi and Robinhood. While the platforms differ, trading event contracts remains consistently straightforward and accessible. I might add that my success rate has since improved, but I’m still aware of the risks."
Traders primarily use event contracts for speculative trading on information or news before it happens. Event contracts are typically structured around Yes or No outcomes, such as:
Will inflation exceed 2.5% in May?
Will the Boston Celtics beat the New York Knicks in the Conference Semifinals?
Will bitcoin (BTC) reach a new all-time high in 2025?
You can also use these contracts for hedging risks. For example, a trader may use event contracts to hedge against the potential impact of an upcoming election result on their investment portfolio.
How do event contracts work?
When you buy a ‘Yes’ contract, you’re wagering yes to the event question, and vice versa.
Each contract reflects a probability between $0.01 and $0.99, with each cent corresponding to a 1% chance that the event will occur. For example, a contract priced at $0.48 can be interpreted as a 48% chance that it will occur according to the then-current odds of that market.
This price can fluctuate over time as new information emerges. For example, a ‘Yes’ contract for “Will the Phillies beat the Mets?” that you purchase at $0.50 per contract before the game starts might trend to $0.95 per contract by the bottom of the eighth inning because the Phillies are up 9-0. The odds are now higher that the Phillies will win.
The event contract pays out if you hold a position that matches the correct outcome. Otherwise, it expires worthless. Each correct contract is typically worth $1.00 upon settlement. You can typically also close your position before the contract resolves.
Back to that Phillies example, you could sell your position at the bottom of the eighth and get $0.95 per contract or hold your position until the game ends and earn the full $1 per contract. When the results finalize, your profit is the amount you earn per contract, minus the contract cost and any fees.
4 brokers that offer event contracts
Event contracts are quickly growing in popularity. However, only a handful of brokers currently offer access to these products.
Here’s where you can trade event contracts, as of May 2025.
Robinhood
9.4
Excellent
Get a free stock when you successfully sign up and link your bank account.
Robinhood’s prediction markets hub offers event contracts around economics, men’s professional basketball and men’s pro hockey. Previous markets included the 2024 Presidential Election and the 2025 Masters. Robinhood charges a $0.01 commission, and another $0.01 goes to the exchange that executes the order.
Event contracts are only available on the Robinhood app. While you won’t find access to event contracts through the web, you can earn a 4% APY on your uninvested cash.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get a free stock
Robinhood’s prediction markets hub offers event contracts around economics, men’s professional basketball and men’s pro hockey. Previous markets included the 2024 Presidential Election and the 2025 Masters. Robinhood charges a $0.01 commission, and another $0.01 goes to the exchange that executes the order.
Event contracts are only available on the Robinhood app. While you won’t find access to event contracts through the web, you can earn a 4% APY on your uninvested cash.
Interactive Brokers(IBKR) charges no commission on forecast contracts through ForecastEx and $0.10 per contract for CME event contracts. Plus, earn 3.83% APY on your investment with an interest-like incentive coupon.
Markets include elections, economic indicators, environmental and government.Trade across IBKR's desktop, mobile and online trading platforms, and get $3 to try it out when your account receives permissions for Forecast Contracts.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
N/A
Interactive Brokers(IBKR) charges no commission on forecast contracts through ForecastEx and $0.10 per contract for CME event contracts. Plus, earn 3.83% APY on your investment with an interest-like incentive coupon.
Markets include elections, economic indicators, environmental and government.Trade across IBKR's desktop, mobile and online trading platforms, and get $3 to try it out when your account receives permissions for Forecast Contracts.
Pros
Trade across various platforms
Straightforward commissions
Advanced trading tools
Earn a 3.83% APY incentive coupon on your investment
Webull's partnership with Kalshi, an event contract exchange, lets customers trade select event contracts directly within the Webull platform. View available contracts with Webull's real-time Order Book data or view market movements and volume data in a chart.
Webull charges a $0.01 commission per contract, and it's only available through the mobile app.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get 20 free fractional shares
Webull's partnership with Kalshi, an event contract exchange, lets customers trade select event contracts directly within the Webull platform. View available contracts with Webull's real-time Order Book data or view market movements and volume data in a chart.
Webull charges a $0.01 commission per contract, and it's only available through the mobile app.
Kalshi is the first exchange regulated by the Commodity Futures Trading Commission dedicated to trading event contracts. Its selection of tradable markets is unmatched, offering access to:
Politics
Sports
Culture
Crypto
Climate
Economics
Mentions
Companies
Financials
Tech & Science
Health
World
Kalshi’s trading fees aren’t as straightforward. It charges a transaction fee on the expected earnings of the contract, but it pays 3.75% interest on cash and open positions.
Minimum deposit
$0
Signup bonus
N/A
Kalshi is the first exchange regulated by the Commodity Futures Trading Commission dedicated to trading event contracts. Its selection of tradable markets is unmatched, offering access to:
Politics
Sports
Culture
Crypto
Climate
Economics
Mentions
Companies
Financials
Tech & Science
Health
World
Kalshi’s trading fees aren’t as straightforward. It charges a transaction fee on the expected earnings of the contract, but it pays 3.75% interest on cash and open positions.
Easy to understand. Event contracts are easy to understand and accessible to beginners.
Low entry cost. Contracts are priced between $0.01 and $1, making them accessible to traders with limited capital.
Hedging opportunities. Hedge against real-world uncertainties, such as economic shifts and political outcomes, which may affect your investment portfolio.
Cons
High risk of loss. Event contracts are often highly speculative, with unpredictable outcomes.
Platform dependency. Event contracts are limited to specific platforms, which can lead to higher fees and low liquidity.
Variable trading fees. Trading fees are generally low but can vary by market type.
Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions.
Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio
Matt's expertise
Matt has written 196 Finder guides across topics including:
Robinhood Gold costs $5/month. The cost is worth it if you take advantage of the IRA match, margin interest savings and bonus on taxable deposits.
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