In the United States, **event contracts** (often called **event-based contracts** or **event contracts USA**) are a type of financial derivative offered by regulated exchanges such as Kalshi or CME. These contracts allow traders to speculate on the outcome of real-world events—such as whether inflation will rise above a certain level, whether a specific election result will occur, or whether a particular sports or weather event will happen.
Each contract typically settles at a fixed amount (e.g., \$1) if the event occurs, and \$0 if it does not, allowing participants to buy or sell based on their expectations. Event contracts are regulated by the **Commodity Futures Trading Commission (CFTC)** in the U.S., which oversees them to ensure compliance with financial laws and limits on gambling-like behavior.
In essence, **event contracts** are a way for individuals or institutions to hedge risk or express opinions about future events within a legal, regulated trading framework.
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CME Group Steps Into the Event Prediction Market With FanDuel’s New Platform
The Chicago Mercantile Exchange (CME Group) is preparing to enter the fast-growing market for event prediction contracts. In partnership with FanDuel, the companies will launch a new application — FanDuel Predicts — in...