Kalshi Plans to Let Users Trade Stock Market Moves Without Buying Shares

US prediction market platform Kalshi plans to give users a way to profit from rises and falls in the stock market without buying shares in individual companies, Reuters reported.

Kalshi is best known as a prediction market platform where users trade on the outcomes of elections, sporting events and other events. The new product would bring the company closer to traditional exchanges and derivatives operators such as CME Group, Cboe and ICE, putting it in competition with them for stock market traders.

To do this, Kalshi plans to launch perpetual futures linked to equity indexes.

In simple terms, users would be able to take a position on whether the market will rise or fall. If they get the direction right, they make a profit; if they get it wrong, they lose money. They would not need to buy the underlying shares.

Unlike traditional futures, these contracts would have no predetermined expiry date, meaning users could decide when to close their positions. Traders would also be able to use leverage, allowing them to take larger positions with a smaller amount of their own capital. This can magnify both potential profits and losses.

To launch the new product, Kalshi has filed documents with the US Commodity Futures Trading Commission (CFTC), the regulator that already oversees the platform.

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