Kalshi Applies to CFTC for Margin Trading in Prediction Markets

iconKuCoinFlash
Share
AI summary iconSummary
Kalshi has applied to the CFTC for margin trading on selected event contracts to enhance the risk-to-reward ratio for eligible traders. The feature, available through Kalshi Klear, would permit leverage to attract institutional liquidity. Margin trading will be restricted to self-clearing members that meet capital requirements. Kalshi also intends to increase margin requirements as contracts approach expiration. The proposal excludes sports, cultural, and "mention" markets.

BlockBeats news, on September 22, according to CNBC, the prediction market platform Kalshi has submitted an application to the U.S. Commodity Futures Trading Commission (CFTC) through its clearing house, Kalshi Klear, seeking to introduce margin trading on certain event contracts, allowing eligible traders to use leverage.


Currently, event contracts on regulated U.S. exchanges require full collateralization. Although Kalshi has introduced leverage in its perpetual futures business, it has not yet been approved for use in prediction markets. Kalshi states that this feature aims to attract greater institutional liquidity; if approved, it will be available only to self-clearing members meeting capital requirements and will not apply to sports, cultural, or "mention-based" markets. The company also plans to increase margin requirements as contracts approach expiration.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.