Kalshi is a federally regulated event trading exchange that allows individuals to trade on the outcomes of real-world events. As the first U.S. exchange of its kind, Kalshi enables users to buy and sell 'event contracts,' creating a new asset class centered around predictions on everything from economic indicators to political decisions and weather outcomes.
Kalshi is regulated by the Commodity Futures Trading Commission (CFTC), which distinguishes it from many other prediction markets and ensures legal compliance for U.S. traders. The platform aims to expand what people can trade on, letting users capitalize on their opinions and expertise regarding everyday events.
The Technology Behind Kalshi's Event Contracts
Kalshi's core innovation is the development of 'event contracts'—standardized agreements that pay out based on the outcome of specific, objectively verifiable events. The technology powering Kalshi includes a robust trading engine, compliance infrastructure to meet federal requirements, and an accessible web platform where users can view, trade, and manage event-based positions. By leveraging regulated exchange infrastructure, Kalshi offers transparency, settlement certainty, and security for its users.
Who Uses Kalshi?
Kalshi primarily serves retail traders, market enthusiasts, and professionals interested in hedging or speculating on the outcomes of real-world events. Users range from individuals seeking to profit from their insights on news and trends, to sophisticated traders and institutional clients looking for exposure to non-traditional asset classes. The platform is accessible across the United States (where legally permitted) and is designed for both casual participants and those with advanced trading experience.
Kalshi's Competitors and the Prediction Market Landscape
Kalshi operates within the broader fintech and prediction market space, which includes:
- PredictIt: An online political prediction market popular for trading on political outcomes, though it operates under a research exception and faces regulatory constraints.
- Polymarket: A blockchain-based prediction market allowing users to trade on diverse event outcomes, though it is not CFTC-regulated and may have restrictions for U.S. users.
- Augur: A decentralized, open-source prediction market protocol built on Ethereum, focused on global, peer-to-peer event trading.
- Manifold: Another prediction market platform, generally focused on forecasting and community-driven markets.
Kalshi's main differentiator is its status as a fully CFTC-regulated exchange, offering legal certainty and compliance for U.S. traders, which many competitors currently lack. This regulation allows Kalshi to offer a broader set of event contracts within a secure and transparent trading environment.
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