Ruben, a resident of California, is eager to start trading prediction markets on Robinhood. Fortunately, he can since Robinhood is available in almost all US states, including California.
The Commodity Futures Trading Commission regulates Robinhood's prediction markets. To trade predictions, Ruben must be at least 18 years old and create a Derivatives account first.
On the Robinhood app, Ruben can access various prediction markets, such as sports, technology, politics, economy, crypto, entertainment, and climate. He can place trades on event contracts priced between $0.01 to $0.99, with prices reflecting the likelihood of an event occurring.
If Ruben correctly predicts an event, Robinhood will pay him $1 per contract. However, if his predictions are incorrect, he'll get nothing. Additionally, Robinhood charges a fee of $0.01 per contract traded.