Glossary › Event contract
Checked September 25, 2026 · 3 sources · plain-English definition, not financial advice
Event contract: A contract that pays a fixed amount, $1 on Kalshi, if a stated event happens and nothing if it does not; its price reflects the market's odds.
An event contract turns a yes-or-no question into something you can trade. On Kalshi each contract pays $1 to the side that turns out right and nothing to the other, so the price you pay is also the market's estimate of the chance. Kalshi's member agreement defines event contracts as contracts listed on the exchange that are based on or reference the outcome of an event.
Example: a contract on whether it rains tomorrow trades at 70¢. Buy Yes at 70¢ and, if it rains, you receive $1 at settlement, a 30¢ profit before fees; if it stays dry you lose the 70¢. The CFTC uses this same rain example in its guide to prediction markets and notes that taxes and fees also affect your return.
The CFTC says event contracts are typically structured as swaps and can be used to hedge a real risk or to speculate. Before you trade one, check the exact rules and settlement source, when trading closes and when the outcome is determined, and the fee on the order ticket.
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Checked September 25, 2026. Kalshi changes fees, rules, funding options and limits; the market's rules, the order ticket and Kalshi's help center are the final word.
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