FTX Derivatives Exchange Adds Derivatives Contacts for U.S. Elections
FTX Adds Derivatives Contacts for U.S. Elections – Cryptocurrency derivatives exchange FTX is adding futures contracts for investors to trade on the U.S. Presidential Elections, with the TRUMP-2020 (TRUMP) contract already on the market.
The exchange also announced it’s planning to release five additional 2020 presidential election-based futures products, with an FTX representative. It will be coming out with similar contracts for the top five Democratic candidates.
This means the firm is launching futures trading products for Joe Biden (BIDEN), Elizabeth Warren (WARREN), Bernie Sanders (BERNIE), Pete Buttigieg (PETE), and for Mike Bloomberg (BLOOMBERG).
The TRUMP contracts expire to $1 in case Donald Trump gets reelected in the upcoming elections, and to $0 if he isn’t reelected. To get elected, a candidate will need 270 or more electoral votes, and FTX will settle the contracts if all major media outlets – including Fox, CNN, and the New York Times – have projected a specific candidate will be the winner before all states release their official vote counts.
The price of the contracts, per the exchange, should be “equal to the probability that Trump wins reelection,” and as such “if you think there’s a 52% chance of Trump winning, then TRUMP should trade at $0.52.” Notably, the contracts can’t be traded by residents of the U.S., E.U., UK., Hong Kong, Singapore, and other prohibited jurisdictions