What Is Kalshi? A New Yorker's 2026 Guide to How It Works

What is Kalshi, in one paragraph?

Kalshi is a federally regulated financial exchange — a Designated Contract Market under the CFTC — that lists binary event contracts on real-world outcomes. Instead of trading shares of a company, you trade Yes/No contracts on questions like 'Will the Fed cut rates in June?' or 'Will NYC have more than 10 days above 90°F in July?'. Every contract settles for $1.00 if Yes resolves, or $0.00 if No.

How does a Kalshi contract actually price?

The price of any contract reflects the market's implied probability of the outcome. A contract trading at $0.62 means traders collectively believe there's a 62% chance of Yes. Buy at $0.62 and you risk 62¢ to make 38¢. Buy No at $0.38 and you risk 38¢ to make 62¢. The two sides always add to $1.00 — that's how a binary book stays clean.

Three NYC examples worth understanding

• —Knicks playoff series — Garden crowds move the price in real time. If the Knicks are priced at $0.55 to win Round 2, that's the market's read of a coin flip with a slight Knicks lean.
• —Fed-cut odds — a June 25-bp cut at $0.61 means Wall Street desks and downtown group chats collectively price a 61% chance. Movement of 5–10 points is a macro signal.
• —Central Park heat — a July 'days above 90°F' contract lets a Brooklyn renter hedge their Con Ed bill, as covered in our Kalshi weather markets piece.

How do you put money in and take it out?

You fund a Kalshi account via ACH bank transfer or debit card — both denominated in USD with standard bank-level protections. Withdrawals go back to the linked bank account; standard ACH settlement applies. There's no crypto bridge, no off-platform custody, and no leveraged margin. See our walkthrough on withdrawing from Kalshi as a New Yorker.

How does Kalshi make money?

Kalshi charges a small trading fee per contract — a few cents on most markets, scaled by trade size. There's no spread markup baked into a two-sided house price; the order book matches buyers and sellers directly, and Kalshi takes its fee on settlement. That's a structurally different economic model from a bookmaker, which is part of why the CFTC treats it as a financial exchange rather than gambling.

Is Kalshi the same as Polymarket?

No. Polymarket's US app is available to New Yorkers and runs on its own CFTC-regulated exchange, in dollars, with a different market menu. Kalshi is federally regulated, and operates as a US securities-style exchange. Full breakdown in our Kalshi vs Polymarket comparison.

What about Sleeper, Chalkboard, Novig?

Sleeper and Chalkboard are DFS or sweepstakes products, not event-contract exchanges, and they're travel-only for New Yorkers — NY's DFS and Article 225 rules don't recognize them for in-state play. Novig is different: a CFTC-designated exchange (Ludlow Exchange LLC, designated 16 June 2026) for peer-to-peer sports event contracts, available in New York (deposit $10, get $50 in trade credits with NYPREDICTS). Kalshi, Polymarket and OG (Crypto.com's event-contract app) all take a New York resident's trade today; OG comes with $25 in rewards when you trade $25 on signup with code NYPREDICTS.

FAQ

Frequently asked questions

What is Kalshi in simple terms?

Kalshi is a US financial exchange where you trade Yes/No contracts on real-world events — sports outcomes, weather, economics, elections — at prices between $0.00 and $1.00. Winning contracts settle at $1.00, losing ones at $0.00. It's regulated by the CFTC, the same federal agency that oversees commodity futures.

How does Kalshi make money?

Kalshi charges a small per-contract trading fee on matched trades. There's no spread markup like a sportsbook — the order book matches buyers and sellers directly and Kalshi collects its fee at settlement.

Can I trade Kalshi from New York?

Available — dispute pending (as of October 3, 2026). Kalshi is a CFTC-regulated Designated Contract Market and is available in 48 US jurisdictions, including New York. Its weather, sports, and macro contracts are legal for New York residents under federal commodity law.

How many markets does Kalshi list?

Kalshi lists thousands of active event contracts across categories including economics, weather, politics, sports, culture, and crypto. New markets are added regularly; some retire after they resolve.