Decimal

<ul> 
 <li aria-level="1">Event derivatives allow trading based on predictions of elections and other significant events, gaining popularity among traders.</li> 
 <li aria-level="1">Recent legal rulings favor derivatives for event betting, bolstering Robinhood’s expansion into futures and index options trading.</li> 
</ul> 
Robinhood, announced on Monday that it will introduce trading in U.S. presidential election event contracts, tapping into the increasing retail interest in speculative betting products. 
This new offering allows investors on Robinhood’s platform to engage in trading based on their predictions of the outcome of the upcoming presidential election between Vice President Kamala Harris and former President <a href="https://www.ethnews.com/donald-trump-pledges-to-commute-ross-ulbrichts-sentence-in-pro-bitcoin-agenda/">Donald Trump</a>. 
The introduction of these contracts coincides with a tight race, where polls indicate a slight lead for Harris, though within the statistical margin of error. Following the announcement, Robinhood’s stock experienced a 3% increase, underscoring positive market reception to this new venture.&nbsp; 
The platform will initially roll out these contracts to a select group of users, who are required to be U.S. citizens, starting from Monday. 
Event derivatives trading, which Robinhood is now adopting, allows traders to buy and sell contracts predicated on the results of specific events, such as elections, economic indicators, or significant policy decisions. 
Although these derivatives are relatively new to the financial market and carry high risks, they have become increasingly popular among traders seeking to capitalize on event outcomes. 
Henry Robinson, co-founder of Decimal Digital Currency, commented on the development, stating: 
<blockquote>
 “As financial markets evolve and democratize, investors will grow to appreciate these kinds of very specific risk contracts. Robinhood coming to the table early is a smart move.”
</blockquote> 
This comes after a federal judge in September and an appeals court in October upheld the legality of <a href="https://www.ethnews.com/robinhood-rolls-out-bitcoin-and-ethereum-futures-trading-alongside-new-legend-platform/">using derivatives for event betting</a>, a significant development against the U.S. Commodity Futures Trading Commission’s previous stance to block such activities. 
Additionally, Robinhood has recently expanded its offerings, introducing futures and <a href="https://www.ethnews.com/robinhood-to-list-spot-ethereum-etf-ceo-vlad-tenev-confirms/">index options trading</a> on its mobile app, marking another step in its strategy to evolve from a platform popular with retail investors to a comprehensive financial services provider.&nbsp; 
This shift is part of Robinhood’s broader goal to enhance profitability and market position by 2024, as demonstrated by the significant rise in its stock value this year, indicating robust investor confidence. 
<img decoding="async" class="aligncenter size-full wp-image-102533" src="https://www.ethnews.com/wp-content/uploads/2024/10/HOOD_2024-10-28_13-14-13.png" alt="HOOD_2024-10-28_13-14-13" width="1646" height="959"> 
Robinhood (HOOD) is currently trading at $28.14, with a 3.99% increase. Over the past week, it has gained 4.24%, and over the past month, it has surged 24.35%. Immediate support is around $25, while resistance is near $30.&nbsp; 
The post <a href="https://www.ethnews.com/robinhood-launches-u-s-presidential-election-event-contracts-trading/">Robinhood Launches U.S. Presidential Election Event Contracts Trading</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Robinhood Launches U.S. Presidential Election Event Contracts Trading

ETHNews

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