A new exchange is trying to make it easier to hedge against events in politics and other areas.
Kalshi, a firm founded by Tarek Mansour and Luana Lopes Lara, was designated as a contract market by the Commodity Futures Trading Commission in late 2020 and officially launched in June.
The exchanges offers binary, yes-or-no contracts that pay out $1 if the investor makes the correct selection. Some of the current offerings include “will a recession start by Q2 2022” and “will income taxes on the highest income bracket increase by the end of 2021.” Traders are not allowed to use margin to take their positions.
In some ways, Kalshi looks like overseas betting markets that will sometimes gain…