What Are Robinhood Event Contracts? Everything You Need to Know - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Economic News
Newswires RSS Get our newsletter
Order Prints
June 8, 2025 Newswires
Share
Share
Post
Email

What Are Robinhood Event Contracts? Everything You Need to Know

Staff WriterSt. Albans Messenger

Robinhood has officially entered the world of prediction markets, adding to its wide range of investing options for customers. Through its Robinhood Derivatives platform, the company now offers event contracts, a new way for retail traders to speculate on real-world outcomes, from Federal Reserve interest rate decisions to the NCAA college basketball tournaments.

These aren't bets in the sportsbook sense. Event contracts are CFTC-regulated financial instruments that allow traders to take a position on whether a specific event will happen. The format is simple: Yes or No. If your prediction is correct, the contract pays out $1. If not, it expires worthless.

Robinhood's event contracts are actually offered through a partnership with Kalshi, a standalone event contracts exchange that offers even lower fees.

Sign up to Kalshi here to trade real money on future events.

How event contracts work on Robinhood

An event contract is based on a binary outcome—something either will or won't happen. The price of each contract fluctuates between $0.01 and $0.99, reflecting the market's implied probability of the outcome. A price of $0.53 suggests a 53% chance that the event will happen, according to current market sentiment.

Traders can only hold one side of a contract at a time. Buying Yes means you believe the event will happen; buying No means you believe it won't. If you want to exit the trade before settlement, you close your position by selling your contracts at the current going price.

Each contract settles at either $1 or $0. If you bought at $0.47 and your prediction was right, you receive $1 at settlement, netting a $0.53 profit before fees. If you're wrong, the contract expires at $0, and you lose your initial stake.

Getting started with Robinhood Derivatives

To trade event contracts on Robinhood, you'll need an approved Robinhood Derivatives account. Eligibility requires that you're a U.S. citizen and have an active investing account with either margin investing enabled or Level 2 or higher options trading approval.

Once approved, you can search "event contract" or find the new prediction markets hub directly within the Robinhood app. From there, select a contract, choose Yes or No based on your outlook, enter the number of contracts you want to purchase, and swipe to submit. Orders are submitted as immediate-or-cancel limit orders, so your trade will only go through if there's a market participant willing to take the opposite side. If no match is found, your order will be canceled or rejected.

Closing a position works the same way—select the contract, choose to close, and confirm the number of contracts you'd like to unwind by purchasing the opposite side.

Timeline, trading hours and payouts

Each event contract comes with its own timeline, displayed on the contract detail page. This timeline shows when the contract becomes available, the last day you can trade it, and the expected payout date. Trading hours can vary but often run from 8 a.m. to 3 a.m. ET, depending on the specific contract.

Once an event resolves, the contract is settled, and eligible proceeds are distributed. It can take up to two business days for those funds to become available for withdrawal. While the payout date reflects when your position is resolved, the timing for funds to move from your Robinhood Derivatives account to your investing account may lag slightly.

Robinhood event contract fees and pricing

Each contract carries a Robinhood commission of $0.01 per contract traded. Some contracts also include an exchange fee of $0.01, while others have a built-in spread instead. If a spread is embedded, you might notice that the Yes and No contract prices add up to slightly more than $1—typically $1.01. This difference accounts for how exchanges generate revenue when fees aren't charged directly.

For example, if you buy a Yes contract at $0.47 and pay $0.01 in both Robinhood and exchange fees, your total cost is $0.49. If the contract settles at $1, you make a $0.51 profit. In a spread-based example, buying at $0.60 plus a $0.01 Robinhood fee gives you a total cost of $0.61, and your max gain is $0.39 if you're correct.

Maximum profit is the difference between your cost basis and the $1 payout. Maximum loss is limited to your upfront investment.

A new way to trade on future outcomes

Robinhood's launch of event contracts offers a low-cost, defined-risk way to speculate on the news and headlines that shape the world. Whether you're predicting Fed decisions, tournament results, or future political developments, these contracts provide a unique method to trade based on conviction rather than simply price movement.

The product is not without its limitations. You must meet eligibility requirements to participate, and not all contracts are available in every state. Liquidity may be lower than traditional equities markets, meaning some orders may fail to execute. Event contracts also can't be traded via stop or limit orders, and Instant Deposits often aren't usable for these trades.

Still, for traders looking for a structured and regulated way to engage with prediction markets, Robinhood's offering creates a new frontier. With contracts priced in cents, outcomes backed by a $1 payout, and a growing range of events to choose from, Robinhood event contracts make it possible to turn your predictions into a trading strategy—all within the app.

Older

Congress Asset Management Co. Cuts Holdings in PotlatchDeltic Co. (NASDAQ:PCH)

Newer

Best Financial Stocks To Follow Now – June 8th

Advisor News

  • Semi-retirement: helping clients balance flexibility with financial security
  • The 6X Formula for leveraging content marketing with AI
  • When a home becomes difficult to insure, the plan changes
  • The inheritance gap: Helping clients plan for money that hasn’t arrived
  • After the midterms: Addressing your clients’ tax concerns
More Advisor News

Annuity News

  • Athene CEO criticizes offshore reinsurance, risk-taking by competitors
  • DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
  • John Hancock launches new fixed indexed annuity suite
  • Annuities to play a larger role in workplace retirement plans
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Annuity News

Health/Employee Benefits News

  • Data on Managed Care Described by Researchers at Johns Hopkins University (Locating the Gender Payment Gap Among Recent Cardiothoracic Surgery Graduates: A Bottom-up Analysis of Medicare Payments): Managed Care
  • Medicare Advantage stays in Coos, Carroll counties after Ayotte recruits insurer
  • iA Financial Group Increases Core ROE†† Target¹ to 18.5%+ in 2028
  • Franklin County Hiring Juvenile Probation Officer
  • 'That's Annoying': Incoming Dem Rep Pans 'Terrible' Obamacare Plans Offered to Members of Congress
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Fubon Insurance Vietnam Co., Ltd.
  • Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
  • Military Briefs: November 12-18
  • Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
  • FHLBank Pittsburgh Announces Results in 2026 Board Election
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.