More Bang for Your Vote: Robinhood Introduces Contracts to Bet on Upcoming US Election

Those looking to make their vote count for their bank account can, now use the Robinhood (HOOD) platform to do so as the company rolls out presidential election event contracts to enhance retail demand for betting-related products.

Before the market opened on Monday, shares of Robinhood traded up 3% as a limited number of users who must also be US citizens will have the ability to purchase these contracts as they roll out on Monday.

Event derivatives have increased in popularity and are relatively new but are considered to be riskier than traditional financial instruments. Robinhood introduced futures and index options trading features to its mobile app, for a fee, earlier this month which has shifted from its traditional commission-free trading model. The company is focused on transitioning to a comprehensive financial services provider with brokerages focused on institutional clients. The company mentioned earlier in the year that it is committed to expanding margins with a priority objective to obtain “profitable growth” in 2024. Shares have risen over 125% YTD.