Platform Guide

How Kalshi Works: America's Regulated Event Exchange

Kalshi is the first CFTC-regulated event contract exchange in the US — event trading with bank transfers, customer protections, and 1099 tax forms. It's the compliance-first counterpart to crypto-native platforms.

HomePrediction MarketsHow Kalshi Works: America's Regulated Event Exchange
Updated July 2026

Setup and Funding

Standard brokerage-style onboarding: US identity verification, then funding by ACH (free, 1-2 days), debit, or wire. No crypto involved — dollars in a regulated exchange member account, with funds held per CFTC customer-protection rules. Available across most US states, with sports event contracts live in a growing subset as regulation evolves.

Contracts and Fees

Markets are binary contracts priced 1-99¢: economics (CPI, Fed rates), weather, politics, awards, sports. Buy Yes or No; sell anytime before settlement. Kalshi charges explicit trading fees (roughly ~1% of notional at mid-range prices, cheaper at extremes) instead of embedding costs in spreads — on liquid markets, all-in costs compare well with any competitor.

Settlement and Taxes

Contracts settle at $1.00 or $0 per the official source named in each market's rules — CPI prints, election certifications, league results. Cash settles same-day to your balance; ACH withdrawals take 1-2 days. Tax treatment is the quiet advantage: regulated exchange trading generates 1099 forms and capital-gains-style treatment rather than gambling-income rules, simplifying filing for active traders.

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FAQ

Quick Answers

The questions readers ask most about this topic.

Kalshi operates federally under CFTC jurisdiction with broad US availability; specific contract classes (notably sports) vary by state as rules evolve. The app shows what you can trade.
Kalshi for regulated dollars, bank rails, and clean taxes; Polymarket for liquidity depth and global market variety. Serious event traders commonly run both — see our full comparison.

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