How does Kalshi work? Basically, it’s a prediction markets site where you can buy and sell Yes/No events contracts for sports and other outcomes. In a nutshell, it’s changing the way that we’re participating in sports.
The prices of each contract are based on the percentage probability of the outcome and are always a fraction of a dollar. For example, if the Nuggets had a 60% chance of beating the Pistons, each “Yes” contract would cost $0.60. If the Nuggets then went on to win, the contract value would pay out at $1.00.
As explained in our Kalshi review, this site is an exchange that’s regulated by the Commodity Futures Trading Commission (CFTC). Primarily, it offers you the opportunity to buy and sell event contracts for prediction markets related to sports, finance, politics, crypto, the climate, and more.
To give you a simple binary example, if the market were “Will there be more tech layoffs in 2025 than 2026?”, the two outcome options would be “Yes” and “No”. If you purchased “Yes” contracts, and there were more layoffs by the end of 2026, you would receive a payout.
The prices of Kalshi event contracts range from $0.01 to $1.00 and usually reflect the probability of the outcome as a percentage. For example, an outcome with a 60% probability will usually open at $0.60 per event contract. These prices change based on user trading activity and factors that can directly impact the outcome of the event.
The events contracts for the outcome that resolve as correct after the event’s conclusion close at $1.00, with all incorrect events contracts closing at $0.00. So if you’d purchase $0.60 events contracts for the correct prediction, you’d make $0.40 profit on each one. If you were incorrect, you’d lose everything.
To give you an idea of how Kalshi works for sports prediction markets, here are how the events contracts look for a Detroit Pistons vs Orlando Magic game in the NBA at the time of writing:
| Team | 💯 Chance | ✅ Yes | ❌ No |
|---|---|---|---|
| Detroit | 58% | $0.58 | $0.42 |
| Orlando | 42% | $0.42 | $0.58 |
Detroit won the game, their “Yes” contract, the Orlando “No” contracts would resolve to $1.00. The other two would resolve to $0.00.
There are three ways that you can purchase contracts:
Kalshi doesn’t charge a fee on the contracts themselves, which means that the probabilities and prices are fair and not juiced. As explained in our Kalshi app review, this is an advantage that prediction market sites have over sportsbooks.
Instead, Kalshi charges fees on the expected earnings of taker markets with immediate matches. Usually, this fee works out at between 1.5% and 3.5%. If you are a “maker”, you may not be charged a fee.
As Kalshi is a trading platform, you need traders on both sides for the contracts to work. For example, if you buy 10 “Yes” contracts, someone must buy 10 “No” contracts for balance. This is another key difference from traditional sports betting, where you wager against the house.
We should begin here by pointing out that things are moving quickly, so you should check updated Federal and state tax laws as often as you can. The bottom line is that your Kalshi profits are taxable and must be declared in your IRS tax documents.
While most people have declared them for capital gains tax, with their P/L record, some lawmakers have argued from them to be classed as gambling. You can find your Kalshi Profit and Loss statements as follows:
You can trade event contracts for the following prediction markets at Kalshi:
US and international sporting events, including matches, leagues, award ceremonies, and more.
Covering everything from US Elections to the length of a government shutdown.
TV show outcomes, Rotten Tomatoes scores, and awards like the Oscars.
Gas prices, Fed decisions, and GDP growth are just some of the markets you can predict here.
Not to be confused with buying and selling actual crypto, you can buy event contracts for things such as the price of BTC by XXXX.
Prediction markets related to the weather, including temperatures in major US and global cities.
For all of the prediction markets that we’ve described above, you’ll potentially find these types of event contracts:
| 📝 Events contract type | 🗣 Description | ✅ Example |
|---|---|---|
| Binary | A two-outcome “Yes/No” contract | Will there be a recession this year? |
| Categorical | Contracts where there are several outcomes | FIFA Men’s World Cup Winner( (48 teams) |
| Scalar | Contracts based on numerical ranges, rather than Yes/No answers | What will the price of BTC be by 55 p.m. on Friday> |
Now that we’ve explained how this trading and prediction markets site works in detail, let’s see how you can create your account and start trading:
Visit – Click one of the banners on this page to load the Kalshi website
Start – Hit the “Sign Up” button to begin
Signup – Choose to register via email, Google, or Apple ID
Password – Enter your email (if you’ve selected this option) and create a password
Personal – Enter your full name, address, and date of birth (must be over 18 to trade)
Verify – Verify your email address and US phone number with the SMS code
Code – Enter a promo code for Kalshi if you have one
KYC – Enter your SSN and upload your photo ID
Approval – You should be approved or denied within 48 hours
Deposit – Fund your account,t then purchase event contracts
Kalshi is a trading exchange that’s regulated by the CFTC. As a result, persons aged 18+ in all 50 states in the US can create an account and legally trade on the platform. That being said, the landscape is changing quickly, so make sure to bookmark this page and check back in for updates.
To finish, here are the main pros and cons of Kalshi:
In summary, Kalshi is a prediction market site where you can buy and sell event contracts for outcomes related to sports, politics, the climate, and more. It is a CFTC-regulated exchange, meaning that users aged 18+ in all 50 states in the US can trade on its website or app.
As we mentioned a couple of times, the legal and regulatory landscape is moving quickly for Kalshi and other prediction markets, so make sure to check back in with us for updates. For now, you can start trading on Kalshi by creating your account via the promo banners on this page. Just be aware of the potential risks of losing money before doing so.
Klashi is a prediction markets site where you can buy and sell event contracts. If your predictions are correct, you receive a payout.
If your prediction is correct, your event contracts will resolve to a dollar ($1.00), giving you a profit on the price you bought them for. For example, if you buy your contracts at $0.60, you’d make $0.40 profit per contract if your prediction was resolved as correct.
Klashi is a relatively easy-to-use prediction markets app with a user-friendly layout. To that extent, it’s decent for beginners, but we’d advise doing your homework on prediction markets before you sign up.
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