Robinhood Introduces New Derivatives Contract for 2024 US Presidential Election

Investing.com — Robinhood (NASDAQ:HOOD) has announced a new derivatives contract enabling investors to wager on the November 5 US presidential election.

In a statement on Monday, Robinhood, known as a popular platform for retail investors, disclosed that it will offer so-called event contracts, allowing users to bet on either Donald Trump or Kamala Harris. Event derivatives trading focuses on buying and selling contracts tied to specific occurrences, such as elections and economic data releases, without requiring the underlying assets.

Event contracts will be part of Robinhood’s Derivatives service. Earlier this month, the company added fee-based futures and index options trading in its mobile app, moving away from its typical commission-free approach.

Customers must apply and meet certain criteria to be approved for the Robinhood Derivatives account that provides access to event contracts. Only US citizens will be permitted to trade these contracts, and a limited number of users can begin accessing them starting Monday.

Robinhood commented, "We believe event contracts give people a tool to engage in real-time decision-making, unlocking a new asset class that democratizes access to events as they unfold."

While national polling indicates a tight race between Donald Trump and Kamala Harris, prediction platforms like PredictIt, Polymarket, and Kalshi suggest Trump holds a substantial lead over his rival.

Reports indicate that significant bets may have influenced these markets, with The Wall Street Journal stating that Trump’s edge on the cryptocurrency-based Polymarket could be attributed to around $30 million in wagers from his supporters.

(Reuters contributed reporting.)