Interactive Brokers Expands Forecast Contracts to Europe
Interactive Brokers has expanded access to its Forecast Contracts in Europe. These contracts let investors trade based on specific financial, economic, or climate-related outcomes.
What Are Forecast Contracts?
Forecast Contracts are event-based instruments. They are tied to defined yes-or-no outcomes. For example, a contract might ask: Will the Eurozone inflation rate exceed 2.5% in August 2025? If the investor answers correctly, the contract settles at USD 1.00. If wrong, it settles at zero. Each contract is between USD 0.02 and USD 0.99. They reflect the market’s probability of the outcome.
Key Features
- Trading is available almost 24 hours a day, 6 days a week.
- Each contract uses a simple yes/no format to show a trader’s view or hedge risk.
- Investors can trade via IBKR ForecastTrader, a web-based platform, or through other Interactive Brokers interfaces.
Who Can Access It?
Forecast Contracts are now available to eligible clients in Europe.
The offering covers accounts with:
- Interactive Brokers LLC
- Interactive Brokers Ireland Limited
- Interactive Brokers Canada Inc.
- Interactive Brokers Hong Kong Limited
The product is listed by ForecastEx LLC, a subsidiary of Interactive Brokers and a CFTC-regulated Designated Contract Market.
Availability may differ depending on the client’s jurisdiction and eligibility status.
Benefits for Traders and Investors
This update will offer these benefits:
Trade on Specific Market Events
Investors can directly act on their expectations of key financial, economic, or climate-related outcomes. It enables precise and targeted trading strategies.
Simplified Risk Management
Forecast Contracts offer a clear yes-or-no format. Traders can manage event-driven risks without dealing with complex derivatives or models.
Low-Cost Market Entry
Traders can take positions with minimal capital with prices starting as low as USD 0.02. It makes it accessible for both small and large investors.
Around-the-Clock Trading Access
Nearly 24×6 trading means investors can respond to global events as they unfold. No need to wait for market hours.
Integrated Trading Platforms
Investors can access these contracts through IBKR ForecastTrader or their existing Interactive Brokers interface. It ensures ease of use without needing new tools.
About Interactive Brokers
Interactive Brokers (IB) is a global brokerage firm. It provides trading platforms to trade stocks, options, futures, forex, bonds, and funds. IB has low-cost trading, comprehensive market access, and decisive analytical tools. Also, it provides real-time pricing and risk management on trading floors. Recently, IB launched IBKR InvestMentor.
Summing Up
European investors get a new tool for expressing market views and managing risk with this expansion. Interactive Brokers continues to broaden its global offerings.
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