Interactive Brokers Rolls Out Election Contracts As Kalshi Resumes High-Stakes Congressional Bets

Interactive Brokers IBKR launched a new range of political betting contracts, allowing U.S. investors to hedge their portfolios against election-related risks.

The contracts, which are available through the company's ForecastEx exchange, give traders the opportunity to speculate on the outcomes of the 2024 U.S. elections, including key races for the presidency and Congress.

Set to begin trading on Thursday at 5:15 p.m. ET, these contracts mark a significant expansion of Interactive Brokers’ offerings, giving investors a new way to engage with political markets.

What Happened: Interactive Brokers introduced its election-based contracts just as KalshiEx, another major player in event-based markets, resumed accepting bets on the outcome of 2024 congressional races.

This resumption comes after a federal appeals court lifted a ban that had prevented Kalshi from offering such contracts, which the Commodity Futures Trading Commission (CFTC) had contested, CNBC reports. While the CFTC continues its legal battle, Kalshi is moving forward with its congressional betting offerings.

Also Read: Wanna Put Your Money On Trump Or Harris? Crypto-Based Polymarket Gets Competition After Kalshi Prevails In Court And Resumes Election Betting Contracts

Alongside Kalshi’s offerings, Interactive Brokers’ new Forecast Contracts give investors access to contracts on both U.S. Senate and House races, as well as the presidential election.

These contracts allow users to bet on outcomes ranging from specific Senate races to whether the Democrats or Republicans will hold a majority in Congress. Additionally, the forecast contracts let investors trade their political insights with a simple "yes" or "no" position, with potential payouts determined by whether their predictions come true.

Why It Matters: This surge in political betting opportunities allows investors to hedge against political uncertainty, potentially protecting portfolios from election-driven market volatility. For KalshiEx, the legal decision provides a key opportunity to continue growing its market presence while regulatory challenges are ongoing.

With traders now eyeing pivotal races, speculation is heating up, particularly on the 2024 presidential election, where both Donald Trump and Vice President Kamala Harris are seen as major contenders, each currently holding a 49% chance of winning, according to Polymarkets. Meanwhile, KalshiEx's betting markets suggest the 2024 Senate could swing Republican, with 75% of bets predicting a GOP majority, CNBC reports.

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