Kalshi Review

Kalshi Ratings at a Glance

Kalshi Product Offering

Kalshi provides a novel opportunity for people to monetize their opinions or predictions on specific national and international events, from China's GDP growth rate to the COVID-19 variant of high consequences. Through Kalshi's event contracts trading platform, you can seamlessly make Yes or No decisions on global events and potentially profit if your predictions are accurate. Kalshi is a US-based regulated financial exchange.

Kalshi’s event contracts allow you to profit from where the world is going or hedge your downside risk from events. You can shift the odds in your favor by having a more profound knowledge of the specific market.

For instance, you can significantly improve your odds of accurately predicting whether the CDC will identify at least one COVID variant with a severe impact or consequence by having a constructive understanding of how the virus has evolved through mutations.For instance, to significantly shift your odds of accurately predicting and profiting off the 2024 election, you need a constructive understanding of the U.S. election process via the Electoral College and the specific issues that may or may not influence swing voters in the battleground states. And although,While you can engage in speculation through Kalshi, having well-crafted strategies is essential for building or hedging your portfolio effectively. Unlike stocks, event contracts are unaffected by overall market sentiment.

A an hedging example, you can buy the stock of Exxon Mobil Corp. (NYSE: XOM)  if you think the global oil price will hit an all-time high heading to 2024 because of geopolitical uncertainty in the Middle East. Your hypothesis about the oil price could be accurate. Still, the stock may decline from company-specific factors like unexpected news of corporate fraud, resulting in potential losses on your investment. Event contracts are immune to such mispricing driven by market forces and sentiment. Overall, you can trade over 80 markets on Kalshi. Here are some major asset classes you can take out event contracts on the platform.

Economic Trends

Economic trends are among the primary event contracts available on the Kalshi trading platform, and you can begin predicting these events with as little as $0.01. For example, you can predict the U.S. interest rate, such as whether the Federal Reserve will raise it in their upcoming meeting. Returns are calculated based on the likelihood of the outcome, with higher potential earnings for less likely events. Once you've accumulated a position in a market, there are two ways to profit. The first is holding your contracts until the market closes, and upon settlement, you'll receive $1 for each correct contract you own. 

For example, if you purchase 100 Yes contracts at 35 cents each, and the contracts close the day at 60 cents, you'll earn 65 cents per contract or $65 in total profit. Secondly, you can change your position after significant and favorable price fluctuation. For example, if you purchased 100 contracts at 30 cents each, and the contract price increases to 80 cents, you can sell before the market closes for a $50 profit. This profit approach applies to all event contracts traded on the Kalshi platform. Other economic activities you can trade include:

• U.S. annual core inflation level
• State of the economy or unemployment rate
• U.S. GDP growth
• Default spike inDefaultsin commercial real estate and 
• AAA ggas yearly high

Political Trend

The Kalshi trading platform is strictly available for U.S. residents. It allows them to predict the country's political future or outcomes. For instance, you can buy or sell contracts on whether Biden's end-of-year approval rating will fall below 40%. You can also engage in event contracts or speculate on the national debt crisis by making Yes or No predictions regarding whether the U.S. will default on its debt. Additional political trends that can inform your predictions: congressional stock trading ban becoming a law, the government winning the Amazon monopoly case, capital gain tax hikes becoming a law and the SCOTUS ruling against the Consumer Financial Protection Bureau’s (CFPB's) funding structure. 

Financial Assets

Suppose your primary interest lies in trading financial assets. In that case, you can rest assured that Kalshi has that aspect covered as well. In the financial section, you can purchase future contracts related to the potential increase in the S&P 500 and Nasdaq-100. Predictions can be made on these indexes potentially rising in value on a daily, weekly, monthly and yearly basis. Additionally, you can predict the official daily, weekly, monthly and annual closing price of the West Texas Intermediate (WTI) oil futures. Another available asset class is FX pairs. You can purchase contracts to predict the value of major pairs like EUR/USD and USD/JPY. Kalshi grants you access to yearly and intra-day trading options for FX pairs. Additional markets you can explore include 10-year Treasury daily yields and Treasury spreads.

Climate Portfolio 

Global climate change is an urgent and multifaceted environmental challenge, driven by human activities such as the burning of fossil fuels and deforestation, resulting in rising temperatures, sea-level rise and disruptions to ecosystems. Kalshi offers you a unique opportunity to earn profits by predicting the outcome of global warming. You can make predictions regarding whether temperature levels are likely to rise or fall in cities like Austin, Chicago, Miami and New York City. Additional contracts in the climate portfolio include predicting Atlantic hurricane counts, global average temperatures, natural disaster declarations and tornado counts.

Other Portfolio Categories 

Finally, additional portfolios cut across science, culture and health. For example, you can wager on NASA successfully landing a manned mission to the Moon before 2025 ends, the possibility of new COVID-19 variants, Apple announcing a foldable phone in 2024, and which movies and actors win specific Academy Award categories. 

Intraday and 0DTE

Kalshi's event contract trading exchange facilitates 0DTE and Intraday, enabling traders who prefer these types of trading to optimize their strategies and maximize their trading opportunities. "0DTE" stands for "Zero Days to Expiration" and is a trading strategy where event contracts are settled on the same day they are traded. This means that traders can speculate on events and their outcomes with the expectation of near-instant results. In contrast, "Intraday" trading involves opening and closing positions within a single trading day. Traders engaging in Intraday trading aim to profit from short-term market movements, taking advantage of price fluctuations that occur during the trading day. 

For example, suppose you want to speculate on whether the daily settle price of WTI oil will exceed $80 per barrel by the end of the Oct 31 trading day. Using a 0DTE strategy, you can buy event contracts predicting a "Yes" outcome, indicating that the daily settle price will surpass $80, and expect to see results by the end of the day, either gaining a profit or incurring a loss, depending on the actual daily settle price. In contrast, an Intraday trader may enter the market earlier in the trading session, perhaps when the daily settle price of WTI oil is still below $80, expecting it to rise as the trading day progresses. They may open a position anticipating a favorable outcome and close it before the trading day ends, taking advantage of intraday price movements to realize profits quickly.

Both 0DTE and Intraday trading strategies offer traders the flexibility to capitalize on short-term opportunities, whether it's predicting the outcome of events, reacting to market news, or capitalizing on intraday price movements, all while keeping their trading positions limited to a single trading day. These strategies suit traders who prefer quick results and are comfortable with the potential for higher market volatility within a single trading session.

Trading Platform and Tools

The Kalshi online trading platform is accessible on the web and mobile using browsers. The website provides a user-friendly starting point for investors to start their trading journey. On the homepage, you can gain an overview of the platform's features and view some primary trading markets. You can easily access all the available asset classes by clicking on the Explore tab from the homepage. The platform categorizes various event contracts into distinct sections, including economics, politics, financials and climate. The platform also provides users with Application Programming Interfaces (APIs), enabling them to build, test and improve their strategies using Kalshi's proprietary forecasting tools. 

You can start your trading journey with the available starter codes or Python packages and assess strategies by analyzing historical data. The API facilitates low-latency broadcasts, enabling traders to seamlessly receive real-time updates on market price movements and trade executions. It grants you access to open-source resources built by the developer community. Kalshi also offers sleek and highly intuitive mobile apps for hassle-free trading on the go. The mobile app has essentially similar functionalities and features to the web platform but provides more flexibility for traders. 

Education Resources 

You can access impressive and insightful collections of educational resources by clicking on the Learn tab from the homepage. The available content covers various topics, from what is event contracts to understanding how the Kalshi online marketplace operates, fund security, selecting the right market, comprehending order types and fees and assessing collateral returns. Additionally, the platform offers excellent video content on trading strategies on its YouTube channels. The blog page provides a wealth of learning resources on the broader economic outlook and reports, trading strategies and valuable insights into the significance of event contracts. 

Kalshi provides real-time customer support through live chats and email during market hours, allowing users to easily connect with the team and access the necessary technical and product assistance. You can access additional support through instant messaging and community-based platforms like Discord and popular social networking sites, including Instagram, X (formerly Twitter) and LinkedIn, where the company maintains a strong presence. You can find answers to common queries about event contracts and Kalshi's offerings in the FAQ section at the bottom of the Explore page and the Help Center. 

Kalshi highly prioritizes the protection of user's funds. It is licensed by the U.S. Commodity Futures Trading Commission (CFTC) as an Authorized Designated Contract Market. The CFTC is a U.S. government agency responsible for overseeing and regulating the country's derivatives markets. Kalshi is the world's first regulated event contracts platform. Being regulated means the platform adheres to specific regulatory requirements and rules aimed at safeguarding investors' funds and ensuring fair and transparent trading practices. For instance, Kalshi's partner clearing house, LedgerX LLC, is also CFTC-regulated, which helps to mitigate default risk on the trading platform.

Client funds are held in a segregated account separate from the company's capital and can be withdrawn when needed by the trader. The platform implements robust surveillance systems to detect and deter fraud in trade transactions and prevent unauthorized access to user's accounts, especially considering the ever-evolving challenges of cyber security. Some of the core account security measures include robust encryption protocols, strict Know Your Customer (KYC) procedures and two-factor authentication (2FA). Kalshi adopts identity authorization via email for user requests. 

Kalshi respects user privacy and does not share or sell user data to third parties without the user's consent or as required by applicable legal regulations. It uses Plaid, a service that adopts similar encryption protocols and data privacy measures, to facilitate the connection between your bank and the exchange. You can review Kalshi's privacy policies for a more comprehensive understanding of how it manages your data.

Kalshi offers a transparent and competitive fee structure. Its $1 minimum deposit and significantly low trading amount of $0.01 make it appealing to diverse traders. Kalshi's revenue primarily comes from trading fees. The platform charges variable transactions per trade based on the expected earnings associated with the contract. Kalshi computes expected earnings by multiplying the maximum potential earnings achievable from the contract by the implied probability of you realizing these earnings. Trading fees only apply to customers who act as takers in the trade. Both liquidity makers and takers participate in Kalshi's order books.

A maker initiates a trade on Kalshi, which remains on the order books until a second trader, a taker, accepts the opposing side of the contract. To clarify, if you enter an order that matches an existing order on the books, your trade will be charged. If only a portion of your order immediately matches, the fee applies only to the matched portion. Any part of your order that doesn't find an immediate match with an existing order incurs no costs and may participate in later trades. The cost of a single contract on Kalshi can vary from $0.01 to $0.99. The specific trading fee also varies based on the contract price and the number of contracts acquired. For instance, if you purchase one contract at a price of $0.01, the fee for that contract will also be $0.01. 

Kalshi does not impose sign-up costs, membership fees or processing fees. Additionally, when you make ACH deposits, the platform does not levy fees. However, wire deposits might incur charges, the exact amount of which varies depending on your bank. Kalshi charges a $2 withdrawal for all withdrawals from your Kalshi account to your linked bank account. In addition to ACH and wire transfer, the platform offers support for bank transfers as a deposit method. Overall, Kalshi's transparent and straightforward fees enable traders to comprehend the costs of their trading activities. 

Kalshi presents a user-friendly website design that boasts intuitive navigation. A sleek and easy-to-use mobile app with similar features to the website is available for on-the-go trading. The platform's customer support is highly effective, offering real-time chat and quick email responses during market hours to facilitate speedy technical assistance. The trading platform is efficient, and the setup steps are hassle-free. To begin your trading journey, visit the Kalshi page and create an account by entering your personally identifiable information. Verify your identity using local IDs, such as your U.S. driver's license, deposit a minimum of $1, select an event market and commence your prediction with as little as $0.01. Kalshi's low initial deposit and straightforward account setup enhance accessibility and improve its user experience. 

Kalshi vs. Competitors

Kalshi stands out as a unique financial exchange helping U.S. investors to engage in event contract trading. Its closest competitor would've been Polymarket, a blockchain-based platform that lets users speculate on comparable world events. However, in 2022, Polymarket got slapped with a $1.4 million fine from the CFTC for not obtaining designation as a designated contract market (DCM), and so remains inaccessible to U.S. traders. The CME Group also launched an event contract after Kalshi, making them another potential competitor. However, they offer way fewer event contracts and less volume on those contracts compared to Kalshi.

Therefore, if you're interested in trading event contracts, Kalshi offers you the most favorable choice of contracts at affordable fees and a conducive environment to make predictions while maximizing profit. 

Kalshi stands out as a unique platform because there are no other exchanges available for U.S. investors to engage in event contract trading, making a direct comparison challenging. Its closest competitor would've been Polymarket, a blockchain-based platform that lets users speculate on comparable world events. However, in 2022, Polymarket got slapped with a $1.4 million fine from the CFTC for not obtaining designation as a designated contract market (DCM), and so remains inaccessible to U.S. traders. If you're interested in trading event contracts, your choice is limited to Kalshi at the moment. 

Kalshi distinguishes itself as a versatile and CFTC-regulated online financial exchange or marketplace for event contracts catering to retail and institutional event contract traders. Its user-friendly web and mobile platforms, low entry barriers, transparent fee offerings and hassle-free setup make it a compelling choice if you're looking for innovative opportunities to trade event contracts and potentially maximize profits. The platform takes adequate measures to protect users' funds and personal data in the online environment; plus, the customer service team is responsive and professional in providing traders with requisite technical support. 

Frequently Asked Questions