Kalshi is a licensed Prediction Market platform by the CFTC, allowing users to trade contracts based on the outcomes of real events.
Unlike traditional stock or commodity exchanges, Kalshi transforms speculation about politics, economy, and culture into financial tools that can be bought, sold, and used for risk hedging.
MAIN CONTENT
Kalshi creates a new asset class: event contracts (Event Contracts) that are legal in the United States.
A licensed CFTC platform, transparent, user-protective, and easy to trade.
Wide applications: from politics, macroeconomics to technology, culture, and weather.
What is Kalshi?
Kalshi is the first Prediction Market platform in the United States recognized by the CFTC, allowing trading of contracts based on real events.
Launched in 2018, Kalshi helps turn personal assessments about the Fed raising interest rates or winter weather into transparent financial products. This is a significant step toward legalizing Prediction Markets in the United States.
What is Kalshi's unique feature?
Kalshi creates new assets: Event Contracts, which are legally protected, traded in a binary Yes/No format, covering various fields and featuring a high-security mechanism.
Unlike unregulated decentralized platforms, Kalshi operates as a Designated Contract Market, adhering to standards similar to CME. Users can trust the data and payments thanks to the Kalshi Klear custody system.
"Kalshi brings a completely new type of asset, where information and events become financial trading tools."
Tarek Mansour – Co-founder of Kalshi, MIT Fintech Conference 2022
How does Kalshi work?
The mechanism includes: listing events, opening Yes/No markets, placing orders, matching orders, custody, and settlement upon actual results.
When the event concludes, the Yes contract receives 1 USD if correct, No receives 1 USD if incorrect. All payments are settled through Kalshi Klear. Trading fees are based on expected profits and are publicly available on the website.
Listing and opening markets
Events are approved according to CFTC standards. Kalshi selects high-impact topics such as interest rates, elections, and inflation.
This approach makes Kalshi a tool for reflecting market sentiment in real-time, similar to a macroeconomic forecasting indicator.
Trading and settlement
Users choose Yes or No, and can place Market or Limit Orders. When the result is confirmed, the system automatically settles.
Thanks to this mechanism, investors can not only speculate but also hedge risks; for example, an importing company can hedge currency risk using event contracts.
"Prediction Markets like Kalshi are not just betting; they are risk management tools for the real economy."
Luana Lopes Lara – Co-founder of Kalshi, interviewed by Bloomberg in 2021
Who are the founders of Kalshi?
Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara, both of whom studied at MIT and worked at Goldman Sachs, Citadel, and Bridgewater.
With a solid financial foundation, they aim for Kalshi to become the first legitimate event contract exchange in the United States. This opens new potential in the alternative finance sector.
What role does Kalshi play in future finance?
Kalshi is not just a place for speculating on events but also a financial tool for hedging risk and reflecting market confidence.
According to The Wall Street Journal (2023), the demand for Prediction Markets is increasing, especially in a volatile economic context. Kalshi could become the "NASDAQ of events" in the data era.
"In the long run, Prediction Markets could become the new financial infrastructure, helping governments and businesses forecast better."
Professor Robin Hanson – George Mason University, Prediction Market expert, 2020
Frequently Asked Questions
Is Kalshi legal in the United States?
Yes. Kalshi is licensed by the CFTC as a Designated Contract Market, fully complying with legal regulations.
What types of events can users trade?
From politics, interest rates, inflation, weather, culture to technology and macroeconomics.
Is Kalshi similar to sports betting?
No. Kalshi is regulated like a financial exchange, with contracts based on economic-social events, not games of chance.
How are trading fees on Kalshi calculated?
Fees are based on the expected profits of the contracts and are transparently published on the website.
Does Kalshi have its own token?
Currently, there is none. Kalshi operates like a traditional exchange and is not a blockchain project issuing tokens.
Source: https://tintucbitcoin.com/kalshi-la-gi/
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