Canadian Interactive Brokers’ users now have a new way to trade on
market-moving events, thanks to the company’s expansion
of its forecast contracts. Already available in the U.S., these contracts reportedly allow
traders to take direct positions on economic data, political decisions, and
even climate outcomes.
A New Tool for Market Prediction
“Forecast Contracts allow investors to engage
with the most important questions driving today’s markets, from inflation and
interest rates to geopolitical developments and climate change,” commented
Steve Sanders, Executive Vice President of Marketing and Product Development at
Interactive Brokers.
“They provide a direct and accessible way to
manage risk and express market views through a focused, easy-to-use
platform.” According to the announcement, Forecast Contracts
function as a straightforward way to speculate on or hedge against key
financial and economic outcomes.
Investors can buy a “yes” contract if they
believe a specific event will happen or a “no” contract if they
think it won’t. If their prediction is correct, the contract settles at $1.00;
if incorrect, it settles at zero.
How Forecast Contracts Work
The contracts are priced between $0.02 and $0.99. They are
reportedly available through IBKR ForecastTrader, a dedicated platform, as well
as other Interactive Brokers’ trading platforms.
Forecast Contracts are available to clients of
Interactive Brokers LLC, Interactive Brokers Canada Inc., and Interactive
Brokers Hong Kong. ForecastEx LLC, a subsidiary of Interactive Brokers regulated by the U.S. Commodity Futures Trading Commission (CFTC), operates the contracts.
Expect ongoing updates as this story evolves.
Canadian Interactive Brokers’ users now have a new way to trade on
market-moving events, thanks to the company’s expansion
of its forecast contracts. Already available in the U.S., these contracts reportedly allow
traders to take direct positions on economic data, political decisions, and
even climate outcomes.
A New Tool for Market Prediction
“Forecast Contracts allow investors to engage
with the most important questions driving today’s markets, from inflation and
interest rates to geopolitical developments and climate change,” commented
Steve Sanders, Executive Vice President of Marketing and Product Development at
Interactive Brokers.
“They provide a direct and accessible way to
manage risk and express market views through a focused, easy-to-use
platform.” According to the announcement, Forecast Contracts
function as a straightforward way to speculate on or hedge against key
financial and economic outcomes.
Investors can buy a “yes” contract if they
believe a specific event will happen or a “no” contract if they
think it won’t. If their prediction is correct, the contract settles at $1.00;
if incorrect, it settles at zero.
How Forecast Contracts Work
The contracts are priced between $0.02 and $0.99. They are
reportedly available through IBKR ForecastTrader, a dedicated platform, as well
as other Interactive Brokers’ trading platforms.
Forecast Contracts are available to clients of
Interactive Brokers LLC, Interactive Brokers Canada Inc., and Interactive
Brokers Hong Kong. ForecastEx LLC, a subsidiary of Interactive Brokers regulated by the U.S. Commodity Futures Trading Commission (CFTC), operates the contracts.
Expect ongoing updates as this story evolves.
This post is originally published on FINANCEMAGNATES.
