Interactive Brokers to Launch Forecast Contracts on US Elections, Expands Risk Management Tools

Interactive Brokers, a global leader in electronic trading, has announced the launch of Forecast Contracts on US election results, offering investors a unique opportunity to trade on political outcomes.

This new addition, scheduled to begin trading on October 3 at 5:15 PM ET, is part of the broader ForecastEx exchange, which already includes contracts on economic data releases and climate indicators. By introducing election-focused contracts, Interactive Brokers is expanding its range of innovative financial products designed to help investors navigate politically uncertain markets.

Forecast Contracts allow investors to place trades based on their predictions of key political outcomes. For US election contracts, investors will be able to buy or sell predictions on the results, with contracts settling at a predefined value—$1 for correct predictions and $0 for incorrect ones. This provides a simple yet transparent way for investors to express their views on election outcomes while managing portfolio risks tied to political events.

Thomas Peterffy, Founder and Chairman of Interactive Brokers, stated, "Forecast Contracts allow investors to act on the most crucial issues shaping our future. These contracts give traders a direct line to market sentiment on elections, helping them manage risk or express views on political events."