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ColoradBro has no affiliation with Kalshi and this is not a sponsored post. When you sign up for Kalshi using the links in this post, we earn a referral fee after you have successfully bet on 100 contracts within the first 30 days of sign-up.
Contract betting is an innovative and exciting way to bet on various events. It allows you to buy or sell the future price of an event from another individual, based on the likelihood of it occurring. You can bet on anything from major events like presidential elections to small events like the temperature in Central Park, NY on a given day.
For instance, Kalshi offers you the opportunity to profit from accurately predicting the terminal interest rate of federal interest rates in 2023. This type of bet is much more difficult or impossible to find using traditional sportsbooks. Currently, the market predicts that the fed funds highest rate will be between 5.25% - 5.49% in 2023 with 66% certainty. This means for every dollar you bet on this outcome being ‘yes,’ your profit potential is 33 cents.
Why Kalshi?
All Kalshi contracts trade on the basis of one-dollar contracts, which makes calculating market odds simple and easy to understand. Contracts for the hit movie Top Gun to win Best Picture for the 2023 Oscars traded at just 2 cents per contract before the award. If Top Gun had won best picture, these contracts would have increased in value by 50X. These are far better odds than those seen at most sportsbooks for the same event.
Not only can you find better odds with Kalshi, but the house only takes 2% of every transaction. This is much better than the 10% that a traditional sportsbook takes.
Kalshi's attractive features make it a great platform to use for contract betting. All events are binary, which means that you don’t necessarily have to be right about an event to make money. You just have to avoid being wrong. All events have discrete outcomes, so there is no ambiguity in determining the outcome of an event. Kalshi is a transparent platform where you can see your entire portfolio of bets in one place. Additionally, Kalshi is a regulated exchange, and all bets are protected by the law, so you can be sure that you will be paid if you win.
Kalshi uses a unique pricing model that is based on the wisdom of the crowd. Prices of contracts are constantly being updated to reflect the latest market information. Contract betting is an excellent way to understand how the public perceives the likelihood of an event occurring. The platform is not constrained to traditional trading hours, so bets can be placed on weekends and well into the evening hours.
How to Get Started Contract Betting on Kalshi
To get started with contract betting on Kalshi, you need to create an account and deposit funds. You can then start browsing the markets and placing bets. If you sign up using our exclusive link, you will receive $25 after you trade just 100 contracts. Contracts can sometimes be as cheap as a penny.
To place a bet, simply click on the "Buy" button next to the contract that you want to buy. You will then be asked to enter the amount of contracts that you would like to purchase. Kalshi makes it easy to understand the amount of money that you are going to spend on the underlying contracts as well as auto-calculating potential profits prior to entering a trade. Limit orders are also available!
Once you have placed your bet, you will be able to track its progress in the "My Bets" section of your account or receive email notifications when the market moves. If your bet wins, you will be paid out your profit and principal.
In conclusion, Kalshi offers a more transparent and regulated way to bet on future events than traditional sportsbooks. However, contract futures carry the risk of loss of capital, so we always encourage our readers to do their own research before, during, and after entering a trade.