Brokerage pioneer tastytrade launches Prediction Markets
tastytrade has made history by launching Prediction Markets, giving retail customers access to CFTC-regulated event contracts through their existing brokerage platform. This move allows traders to bet on financial and economic events such as Federal Reserve decisions, inflation reports, market volatility, commodities, and cryptocurrencies.
The product is available 24/7 and can be managed alongside existing positions. tastytrade has partnered with Apex Fintech Solutions to provide the necessary infrastructure for regulated prediction markets, which reduces costs and technical burdens for brokerages entering this market.
The event contracts are binary, settling according to a specific outcome. Traders assign probabilities to an event occurring, represented by the contract price between $0.01 and $0.99. A correct contract settles at $1, while an incorrect one expires worthless.