Robinhood Markets Inc. announced that it now offers trading in U.S. presidential election contracts, and users can already trade on possible outcomes of the upcoming Trump-Harris race.
This new election trading feature, run through Robinhood Derivatives and ForecastEx, will be available from Oct. 28 through Nov. 8. The contracts will range between $0.02 and $0.99. Trading hours will vary, and during election week, starting Nov. 3, sessions extend nearly 24 hours daily, excluding only 12:00 p.m. to 12:15 p.m. UTC.
In a bid to ensure market integrity, Robinhood has set strict eligibility requirements. The traders need to be U.S. citizens and able to fill out an attestation form showing they have no direct ties to presidential campaigns or vested interests in the election outcome. The careful approach comes as the election prediction market faces increased scrutiny recently amid concerns about market manipulation on other platforms.
The launch puts Robinhood in company with other established players in the election prediction space, including Kalshi, PredictIt and Polymarket. An outstanding appeal by the Commodities Futures Trading Commission against election prediction markets remains, but any decision is unlikely before the 2024 election.
In a remarkable year for Robinhood, the company's stock surged more than 21.77% above the S&P 500. Its success is associated with moving into fee-based derivative trading and its renewed focus on profitability, considering that retail investor interest has rebounded.