Finding the best Robinhood event contracts means you can come up with the best “Yes” or “No” options across a variety of prediction markets on sporting events and even other areas such as politics, finance, and culture.
How does it work? The selected markets reward you either $1 (for a win) or $0 (for a loss). If you lose, however, your contract loses its value. There’s a lot more to explore, so read on for a detailed look at available Robinhood markets and a step-by-step trade breakdown.
Crucially, event contracts revolve around binary Yes/No questions. Buying a ‘Yes’ contract indicates that you think the event will happen; buying ‘No’ means you don’t think it will.
The price for each contract, ‘Yes’ or ‘No’, is between $0 and $0.99, based on the probability of the event occurring. For example, a price of $0.56 per contract indicates a 56% probability that the event will occur.
Once the event has occurred, each contract settles at either $0 or $1. So, if you bought ten ‘Yes’ contracts at $0.56 each and your prediction was correct, you’ll receive $1 for each one. That’s a profit of $0.43 per contract, totalling $4.30, before any fees.
If your prediction wasn’t correct, your contracts will settle at $0, and you’ll have lost the money you paid.
You’ll need to pay Robinhood fees for trading, but we’ll detail these a little later on.
Let’s take a look at an example: You buy 100 ‘Yes’ contracts on the Green Bay Packers to win the Super Bowl. Each contract is currently trading at $0.60, so you spend $60 plus fees. There are then three possible options:
For each event contract at Robinhood, you can choose to trade in dollars or contracts. Contract orders can be either IOC (Immediate Or Cancel) or GTD (Good ‘Till Date), and each one has its own pros and cons
It’s important to remember that all event trades also come with a maximum limit. If this is filled, you won’t be able to trade on that contract. There are no standard limits for this — it completely depends on the individual event.
Every prediction market listed on Robinhood has a designated end date and time. It will also include details on how the official result will be determined. For many cases, the result will be clear (team X beat team Y), but for others, a more specific definition might be required. After the event is ‘resolved’, all contracts are automatically converted into either $1 or $0, and the winner’s accounts are credited.
In rare cases, the result of an event contract may fall outside the Yes/No parameters, for example, a sports match could end in a tie. If this is the case, then Robinhood will use the latest information to determine a fair result for contract settlements.
Yes, Robinhood offers event contracts via a CFTC (Commodities Futures Trading Commission) regulated exchange. Prediction markets fit in the remit of commodity futures rules under federal law rather than gambling laws. Therefore, they are completely legal across the US.
Robinhood is open to members aged 18+ in all 50 states. However, recent updates mean that Maryland residents may not be eligible to participate in trading event contracts. Other legislative changes also mean that Nevada and New Jersey residents aren’t able to trade sports-based contracts. Trades in different areas, such as politics and entertainment, are permitted.
In addition, there are certain prohibitions on who can trade contracts at Robinhood. You won’t be able to participate in any trades that you’re personally involved in or areas where you have any prior knowledge.
Robinhood offers a sweeping selection of event contracts covering politics, sports, culture, economics, and world events. Sports is one of the most popular options and covers professional and college leagues. Previously, sports predictions focused more on futures, but members can now make picks on single-game events across football, hockey, basketball, golf, soccer, tennis, and more.
Have a look at the table below for example event contracts across categories:
| Category | Example predictions |
|---|---|
| Politics | Who will win the next US Presidential election? Will the Democrats control the Senate after the midterms? Who will receive the most votes in a specific election? |
| Sports | Will a specific team win the Super Bowl? Will player X score above/below X points? Will team X win their next game? |
| Economics and finance | Will a company’s Q1 totals be over a set limit? Will X company go live this year? Will the US economy shrink this year? |
| Entertainment | Which film will win the Best Picture Oscar? Who’ll be the most popular artist on Spotify this year? Will a specific film gross over $X million in its opening weekend? |
| Crypto | Will the price of Bitcoin reach a set level by a specific date? Will a particular crypto development, such as a network upgrade, take place by a set time? Will the price of Ethereum rise or fall on a set date? |
All this variety means that you can trade contracts on events from the next US President to whether the Eagles will win the next Super Bowl. To see all of the possible options, the Robinhood hub is your best pal. Go to the Investing page > Prediction Markets to load it up. Then, it’s just a case of swiping left and right to see the different categories.
To participate in trading event contracts at Robinhood, you’ll need to have an approved Robinhood Derivatives Account. Setting one up is easy; just follow these steps to get started:
Go to Robinhood using our links and load up ‘Prediction markets’. You can access the desktop site to view more information, but you’ll need to download the Robinhood app to make your selections.
Have a browse through the available contracts, neatly divided into different categories for ease of use.
Select a contract that appeals and click to go to the individual page.
Select YES or NO to go to the onboarding page. You’ll then need to fill in your personal details, including name, date of birth, and email.
You’re ready to fund your account and start making predictions.
Robinhood charges a flat $0.01 commission on per contract bought and sold. Plus, you’ll pay a $0.01 exchange fee to Robinhood’s partner provider, Kalshi. Therefore, the price of every contract is subject to a $0.02 total fee, meaning that a $0.54 cost, for example, becomes $0.56.
It’s important to remember that your money is at risk at Robinhood, so you should never trade with more than you can afford to lose.
Robinhood is not only well-organized and straightforward to use, but it also has a wide range of event contracts. As of the time of writing, most of these are based on sports, but the number of contracts being added to the site continues to expand. Politics, especially, is a growing area, but finance, entertainment, and sports are also very popular.
If you’re ready to explore Robinhood for yourself, you can click on the links in our banner. If you think Robinhood sounds good but want more information before you take the plunge, we’ve got guides on every aspect of joining and using the site, from a fee breakdown to an in-depth look at Robinhood election prediction markets.
Once the event has completed, all contracts at Robinhood are automatically paid out at $1 (if correct) or $0 (if incorrect). If your contracts were correct, you’ll automatically receive your profits straight into your account and be able to access them immediately.
Each trade at Robinhood has an associated fee — a $0.01 commission to Robinhood and $0.01 to Kalshi, who acts as Robinhood’s exchange. There are no fees to set up an account or any hidden charges if your account is dormant for a period. Be aware that fees may apply to making deposits and withdrawals, but these vary by banking method.
Yes, while you may have seen folks searching for ‘Robinhood sports betting’, the products on offer do not count as gambling under US federal law. However, it’s important to note that you must be over 18 to use Robinhood and that access to some markets may be restricted in selected territories.
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