Interactive Brokers Group expands its event-based Forecast Contracts into Europe, marking a significant step in the company’s mission to provide investors with innovative tools for managing risk. These contracts, which are already available in other regions, now offer European investors a unique opportunity to take positions on clearly defined outcomes across financial, economic, and climate-related events.
Designed for simplicity and accessibility, Forecast Contracts are tradable nearly 24 hours a day, six days a week. With each contract based on a straightforward yes-or-no question, traders can easily express their opinions on specific events. For instance, if an investor believes that the US Federal Reserve will raise the Fed Funds Target Rate above 3.875% after the FOMC meeting on July 30, 2025, they can purchase a “yes” contract.
Interactive Brokers Expands Forecast Contracts to Europe
If the forecast proves accurate, the contract settles at $1.00; if not, it settles at zero. Prices range from $0.02 to $0.99, closely reflecting the market’s perceived probability of each outcome. “Investors worldwide are increasingly seeking tools that help them manage event-driven risks with precision and simplicity,” stated Milan Galik, Chief Executive Officer of Interactive Brokers. He added, “By extending access to Forecast Contracts in Europe, we’re giving investors more ways to act on their views and manage risk through our comprehensive, global platform.”
To facilitate this expansion, clients can access the contracts through IBKR ForecastTrader as well as through other Interactive Brokers platforms. This flexibility ensures that both experienced traders and newcomers can benefit from the product’s straightforward design. The contracts are available to eligible clients of Interactive Brokers entities in the US, Ireland, Canada, and Hong Kong, and they are listed by ForecastEx LLC, a wholly owned subsidiary of Interactive Brokers.
As a CFTC-regulated Designated Contract Market, ForecastEx ensures compliance with regulatory standards, although availability may still vary depending on client eligibility and jurisdiction. By extending Forecast Contracts to Europe, Interactive Brokers continues to enhance its global offerings, enabling more investors to navigate market uncertainties with confidence and clarity.
Getting to Know the Stock Broker
- Interactive Brokers offers competitive fees and global trading options.
- Also, the platform is user-friendly and cost-effective, with competitive spreads.
- It also provides a straightforward trading experience for diverse needs.
- Traders and investors can access a wide range of assets.
- Novices may need time to master its robust tools.
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