Interactive Brokers Expands Prediction Markets Beyond the US, Launches in Canada

Tuesday, 01/04/2025 | 15:26 GMT by Jared Kirui
  • These contracts reportedly enable traders to take direct positions on economic data, political decisions, and climate outcomes.
  • Investors can buy “yes” or “no” contracts based on their predictions, with correct forecasts settling at $1 and incorrect ones at zero, IB explained.
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Canadian Interactive Brokers' users now have a new way to trade on market-moving events, thanks to the company's expansion of its forecast contracts. Already available in the U.S., these contracts reportedly allow traders to take direct positions on economic data, political decisions, and even climate outcomes.

A New Tool for Market Prediction

“Forecast Contracts allow investors to engage with the most important questions driving today's markets, from inflation and interest rates to geopolitical developments and climate change,” commented Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers.

“They provide a direct and accessible way to manage risk and express market views through a focused, easy-to-use platform.” According to the announcement, Forecast Contracts function as a straightforward way to speculate on or hedge against key financial and economic outcomes.

Investors can buy a “yes” contract if they believe a specific event will happen or a “no” contract if they think it won’t. If their prediction is correct, the contract settles at $1.00; if incorrect, it settles at zero.

How Forecast Contracts Work

The contracts are priced between $0.02 and $0.99. They are reportedly available through IBKR ForecastTrader, a dedicated platform, as well as other Interactive Brokers' trading platforms.

Forecast Contracts are available to clients of Interactive Brokers LLC, Interactive Brokers Canada Inc., and Interactive Brokers Hong Kong. ForecastEx LLC, a subsidiary of Interactive Brokers regulated by the U.S. Commodity Futures Trading Commission (CFTC), operates the contracts.

The market for event contracts has recently gained prominence, attracting the attention of regulators. Interactive Brokers’ launch of its event contracts in Canada followed a legal tussle between Kalshi and Nevada gaming regulators.

FinanceMagnates.com reported that the federally regulated derivatives exchange Kalshi sued Nevada gaming regulators to continue offering sports and political event contracts.

Webull collaborated with Kalshi this month to offer binary event contracts. The collaboration includes short-term cash-settled contracts, and Webull plans to become a clearing member of Kalshi. “Bringing Webull Premium to market is the next iteration of Webull's high caliber offerings, providing a new benchmark for retail investors,” said Anthony Denier, Group President and US CEO of Webull.

Canadian Interactive Brokers' users now have a new way to trade on market-moving events, thanks to the company's expansion of its forecast contracts. Already available in the U.S., these contracts reportedly allow traders to take direct positions on economic data, political decisions, and even climate outcomes.

A New Tool for Market Prediction

“Forecast Contracts allow investors to engage with the most important questions driving today's markets, from inflation and interest rates to geopolitical developments and climate change,” commented Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers.

“They provide a direct and accessible way to manage risk and express market views through a focused, easy-to-use platform.” According to the announcement, Forecast Contracts function as a straightforward way to speculate on or hedge against key financial and economic outcomes.

Investors can buy a “yes” contract if they believe a specific event will happen or a “no” contract if they think it won’t. If their prediction is correct, the contract settles at $1.00; if incorrect, it settles at zero.

How Forecast Contracts Work

The contracts are priced between $0.02 and $0.99. They are reportedly available through IBKR ForecastTrader, a dedicated platform, as well as other Interactive Brokers' trading platforms.

Forecast Contracts are available to clients of Interactive Brokers LLC, Interactive Brokers Canada Inc., and Interactive Brokers Hong Kong. ForecastEx LLC, a subsidiary of Interactive Brokers regulated by the U.S. Commodity Futures Trading Commission (CFTC), operates the contracts.

The market for event contracts has recently gained prominence, attracting the attention of regulators. Interactive Brokers’ launch of its event contracts in Canada followed a legal tussle between Kalshi and Nevada gaming regulators.

FinanceMagnates.com reported that the federally regulated derivatives exchange Kalshi sued Nevada gaming regulators to continue offering sports and political event contracts.

Webull collaborated with Kalshi this month to offer binary event contracts. The collaboration includes short-term cash-settled contracts, and Webull plans to become a clearing member of Kalshi. “Bringing Webull Premium to market is the next iteration of Webull's high caliber offerings, providing a new benchmark for retail investors,” said Anthony Denier, Group President and US CEO of Webull.

About the Author: Jared Kirui
Jared Kirui
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About the Author: Jared Kirui
Jared is an experienced financial journalist passionate about all things forex and CFDs.
  • 2449 Articles
  • 50 Followers

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