Robinhood Opens Trading on the Presidential Election Outcome

Robinhood Markets (HOOD) shares advanced Monday after the online trading platform announced that its customers could now make trades on the outcome of the race for U.S. president.

The company said it was launching presidential election event contracts starting Monday. It said an event contract allows participants to trade on how specific events will turn out, “such as whether a candidate will win an election.”

Robinhood noted that customers who meet certain requirements “will be able to trade based on their prediction for ‘who will win the 2024 presidential election’ ” — with one contract for Vice President Kamala Harris and one for former President Donald Trump.

Interactive Brokers, Kalshi Also Have Contracts on the Election

The company added that it believes “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.”

Robinhood joins Interactive Brokers Group (IBKR) and Kalshi in offering contracts through which investors can bet on the results of the Nov. 5 vote. The Commodity Futures Trading Commission (CFTC) attempted to block Kalshi’s move, but a federal appeals court denied the CFTC’s emergency request on appeal, permitting Kalshi to offer the event contracts.

Robinhood shares rose about 3.8% around 1 p.m. ET and have more than doubled this year.