A Beginner's Handbook to Event Contracts

TigerPM
2025-12-01

Not financial advice. Trading of event contracts can carry a high level of risk, and may not be suitable for all investors. This advertisement has not been reviewed by the Monetary Authority of Singapore.

What Are Event Contracts?

Event Contracts offer a simple, intuitive way to trade market moves — and a new lens for reading today’s market sentiment.

With each contract settling at $0 or $100, you get a transparent, limited-risk way to express your view on what will happen next in the markets.

Whether you’re watching the S&P 500, crude oil, or gold — Event Contracts give you a new way to participate.

Examples:

  • Will the S&P 500 close above 6700 on Jan 30, 2026 at 15:00 CT?

They’re designed to be simple:

  • Pick YES or NO

  • Pay a price between $0 and $100

  • If you're right, you get $100

  • If not, you get $0

Your maximum risk is known upfront — you can only lose what you paid.


Why We Love Event Contracts

Not financial advice. Trading of event contracts can carry a high level of risk, and may not be suitable for all investors. This advertisement has not been reviewed by the Monetary Authority of Singapore.

✔ Small Capital Requirement

With prices ranging from $1 to $99, Event Contracts let you start small. Just one contract is enough to participate.

✔ Fixed Payout

Everything settles at $0 or $100. No complicated math. Ideal for investing beginners.

✔ Limited Risk

The most you can lose is the price you paid.

Paid $35? Your downside is $35.

✔ Trade Market Probabilities

Prices act like probabilities.

If YES = 40, the market thinks there's a 40% chance the event happens.

✔ Fast Feedback

Most contracts settle on the same day, based on official daily settlement price of the underlying futures.

✔ Regulated and Transparent

Event Contracts are listed and cleared by the regulated derivatives exchanges. All rules, pricing, and settlement processes follow strict regulatory standards, ensuring full transparency and fair trading.

✔ Market Sentiment Signal

YES/NO prices show real-time crowd expectations.

You're literally trading against the market's collective view.


How It Works (Simple Step-by-Step)

Step 1: Choose an Event

Pick an event related to stock index futures, commodities, or macro data.

Step 2: Review the Prices

  • YES @ 35 → Market thinks there is a 35% chance the event will happen

  • NO @ 65 → Market thinks 65% chance it won’t happen

Step 3: Pick Your Side — YES or NO

Choose based on your view of the underlying market. If you believe the market is mispricing the probability, you can set your own price using limit orders.

Step 4: Trade or Close Early

You can:

  • Hold until settlement, or

  • Close early if prices move in your favor, locking in a profit. Event Contracts can be traded until last minute of underlying future's daily settlement period.

Step 5: Settle at $0 or $100

Settlement uses daily settlement price of the underlying futures — a transparent, exchange-controlled benchmark.

  • If you’re right → you receive $100

  • If not → you receive $0


Start Your Journey Today

Now that you understand how Event Contracts work, you’re ready to turn market insights into real opportunities. Whether you trade or simply observe, each event deepens your understanding of market behavior.

Start your journey today and trade the moments that matter.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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