Robinhood introduces election betting for U.S. users, boosting its stock as investors anticipate interest in high-risk event derivatives ahead of the 2024 election.
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Robinhood on Monday has announced that traders will be able to make money by betting on the election, allowing users to choose Harris or Trump and profit by the pick. The platform said it will begin allowing users to purchase contracts on Monday, to limited users only, who must be U.S Citizens.
Sites like Polymarket are allowing users to bet on the outcome of the election, which has Trump favored in winning the Nov. 5 election (currently on Polymarket Trump has a 66% win betting outcome and Kamala with a 44%).
After the announcement was made, Robinhood stock rose 3.1% showing the excitement of investors from this new feature. A new and high risk investment instrument, event derivatives allow traders to buy and sell contracts to speculate on how a specific event turns out, allowing those who purchase the contracts to profit on the event. Investors are on the edge of their seat as November 5th inches around, to see where the markets will go as we get closer to the next presidential election.
