Brokerage group Webull is set to launch new event contracts that have a one hour expiry.
The broker did not give a timeline for when the products will go live but it is launching them in partnership with Kalshi, a so-called ‘prediction market‘ that’s regulated in the US by the Commodity Futures Trading Commission as a Designated Contract Market.
Kalshi currently has four different event contracts based on the price of bitcoin and ethereum. These are presumably the contracts that Webull will add as well.
The contracts are effectively a form of binary options.
For example, traders can say whether they think the price of bitcoin will be above or below a number of different levels within one hour.
If they think it is going to be above a specific price, they buy a ‘yes’ contract and, if they think it will be below that price, they buy a ‘no’ contract.
The contracts have proven extremely popular on brokerage platforms since going live over the last 12 months.
Robinhood made at least $2m in revenue from the contracts in under a week at the end of last year, by taking trades on the outcome of the presidential election.
