Robinhood launches prediction markets to tap into event contracts demand
The company, which has become synonymous with retail investors in the U.S., is looking to cash in on the growing demand for event-based derivative contracts, once a niche asset class. Event-based derivatives are gaining traction as traders seek to bet on real-world outcomes, such as Fed decisions or elections, offering a straightforward, all-or-nothing payoff tied to specific events. However, the rise of event-based derivatives trading has drawn regulatory scrutiny, with concerns over gambling-like risks and the potential for market manipulation.