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
Foreign currencies
Energy
Metals
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.
Choose from event contracts in stock indexes, energy, metals, and foreign currencies.
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.
You can earn the difference between the purchase price and the closing price for each contract you own.
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.
Interactive Brokers clients can use their existing login credentials to access IBKR EventTrader.
If you already have Futures trading permission, you are permissioned for Event Contracts. If you do not have Futures trading permission but would like to trade Event Contracts:
Trading permissions are usually approved overnight.
Interactive Brokers (Nasdaq: IBKR) is an automated global electronic broker that serves individual investors, hedge funds, proprietary trading groups, registered investment advisors and introducing brokers.
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