Robinhood Markets Inc (NASDAQ:HOOD) shares traded higher after the online trading platform announced that it will allow certain users to bet on the US presidential election starting on Monday.
Through Robinhood Derivatives (RHD), users will be able to bet on the outcome of the election, being held on November 5.
Event contracts allow individuals to trade on the outcome of a specific event, for example, if a candidate will win an election.
There will be two contracts to choose from, one for Democratic candidate Kamala Harris and one for Republic candidate Donald Trump.
Customers must meet certain criteria to be approved for a RHD account, including being a US citizen.
“We believe event contracts give people a tool to engage in real-time decision-making, unlocking a new asset class that democratizes access to events as they unfold,” Robinhood said in a statement.
Shares of Robinhood traded 2.6% higher at $27.76 late morning on Monday.