Event Contract Learning Center
What is an
Event Contract?
Event contracts let you express your view on whether the price of key futures markets will move up or down by the end of each day's trading session.
You can select from the following CME event contracts, and to trade, just choose YES or NO.
Equity Indexes
- E-mini S&P Index
- E-mini Nasdaq-100 Index
- E-mini DJIA Index
- E-mini Russell 2000 Index
Foreign currencies
- Euro/U.S. Dollar (EUR/USD)
Energy
- Light Sweet Crude Oil
- Henry Hub Natural Gas
Metals
- Gold
- Silver
- Copper
How Do Event Contracts Work?
For each event contract you hold that expires “in the money”, in reference to the underlying futures settlement price, you receive a fixed payout of USD 20.00. Your max profit per contract is USD 20.00 minus the contract cost, fees and commissions. Event contracts are priced between USD 0.25 to USD 19.75 per contract and quoted in USD 0.25 increments.
Pick Your Market
Choose from event contracts in stock indexes, energy, metals, and foreign currencies.
Trade Yes or No
Trade YES or NO positions based on your view of whether the event will happen. The "YES" price is determined by the probability that an event will happen.
Generate income based on your insights
You can earn the difference between the purchase price and the closing price for each contract you own.
Example Event Contract Trade
“Will Gold close above USD 1,700.00 today?”
Gold starts trading at
USD 1,700.00
For the “Will Gold close above USD 1,700.00 today?” event contract: YES is trading at USD 3.75. NO is trading at USD 16.75.
This indicates the market is assigning a 19% probability that Gold will close above USD 1,700.00 today and an 84% probability that Gold will close below USD 1,700.00 today.
You believe Gold will close above USD 1,700.00 and decide to buy 2 YES event contracts at USD 3.75 per contract.
Gold closes at USD 1,750.00 so each of your YES contracts has a fixed payout of USD 20.00.
You receive USD 20.00 for each YES for a total of USD 40.00. Since you paid USD 7.50 for the 2 YES and commissions are USD 0.20 (USD 0.10 per contract) your profit on this trade is USD 32.30.
