How Kalshi Works: Trading Event Contracts

Understanding Event Contracts

Kalshi event contracts are binary options that pay out $1 if an event happens and $0 if it doesn't.

The Order Book

Kalshi uses a central limit order book (CLOB) model:

• •**Bid** - The highest price buyers are willing to pay
• •**Ask** - The lowest price sellers are willing to accept
• •**Spread** - The difference between bid and ask

Order Types

• •**Market Order** - Execute immediately at best available price
• •**Limit Order** - Set your maximum/minimum price

Settlement

Events settle automatically based on predefined criteria:

• •**S&P 500 contracts** - Based on NYSE closing price
• •**Weather contracts** - Based on official NOAA data
• •**Economic data** - Based on official government releases

Fees

Kalshi charges:

• •**Trading fee**: $0.01-0.03 per contract
• •**Settlement fee**: $0.01 on winning contracts only

No fees on deposits, withdrawals, or losing trades.