Predict events for fixed payments

Interactive Brokers launched ForecastTraderallowing users to trade prediction contracts with yes/no predictions on political races, economic indicators, financial events and climate trends.

These contracts offer a fixed payout structure and trade 24/6.

Key conclusions

• Fixed payout of $1 per contract for correct predictions
• Trade events such as CPI, Fed rate decisions and state elections
• Zero commissions and a simple pricing structure
• Earn 3.83% APY on contract value held with daily coupon
• $3 bonus credit for new Forecast traders

How do forecast contracts work?

Each contract pays $1 if correct, with a purchase price of $0.02 to $0.99. Your maximum loss is the price paid and your maximum profit per contract is $1 less that price.

Let’s say you believe the Democratic candidate will win the New York gubernatorial primary and the YES contract is worth $0.45. You will make $0.55 in profit (excluding commission) if it is correct and lose $0.45 if it is not.

You can buy multiple contracts to increase your exposure.

In some ways, these contracts resemble binary options, that is, fixed risk and reward. However, they are offered by the highly regulated and transparent provider Interactive Brokers, which sets them apart from many unlicensed binary options platforms.

You can also close Forecast Trades early by buying the other side, while binaries usually see you locked out before expiration.

About Interactive Brokers

Founded in 1978, Interactive Brokers serves over 2.5 million clients, offering access to 150+ markets in 30+ countries spanning the US, UK, Europe, Asia and beyond.

Interactive Brokers is known for its low-cost structure, powerful software and access to global markets.

The firm is regulated by the highest authorities, including the SEC and CFTC in the US, the FCA in the UK and the MAS in Singapore. It is also publicly traded on NASDAQ.

New traders can register and access ForecastTrader with no minimum deposit.

Interactive Brokers (IBKR) is a leading brokerage company that provides access to 150 markets in 33 countries, as well as a complex of integrated investment services. With more than 40 years of experience, this Nasdaq-listed firm adheres to the strict regulations of the SEC, FCA, CIRO and SFC, among others, and is one of the most trusted brokers for trading worldwide.