Interactive Brokers registers significant interest in Election Forecast Contracts
Electronic trading major Interactive Brokers (NASDAQ:IBKR) has announced significant investor interest in Forecast Contracts related to the 2024 US election.
Since their launch on October 3, 2024, over 1,000,000 Election Forecast Contracts have been traded. These contracts allow eligible US investors to trade predictions on political outcomes, as well as economic data releases and climate indicators, via the ForecastEx exchange.
Thomas Peterffy, Founder and Chairman of Interactive Brokers, commented:
“We’ve seen substantial demand for election-focused contracts on our platform in just a short time. This interest underscores the growing relevance of political prediction markets. As the elections approach, we are pleased to offer investors a straightforward way to hedge against political volatility and take positions on key political, economic, and environmental outcomes.”
Forecast Contracts provide an easy way to take a position on political events. Prices range from $0.02 to $0.99, reflecting market consensus on the likelihood of each event. A correct prediction settles at $1, while an incorrect one settles at $0.
Additionally, investors earn a 4.33% APY incentive coupon on the daily closing value of their positions.
Forecast Contracts on election events are available only to eligible US residents. ForecastEx LLC, the operator of these contracts, is a CFTC-regulated, wholly-owned subsidiary of Interactive Brokers.