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Kalshi asks CFTC to allow margin trading on its platform, letting users buy with borrowed funds
The company says leverage could draw institutional liquidity and make longer-dated markets more attractive, while regulated U.S. event contracts are now fully collateralized.
- On Tuesday, Kalshi filed with the Commodity Futures Trading Commission seeking approval to offer margin on event contracts, aligning the platform with standard Wall Street trading practices for equities and derivatives.
- Seeking to attract institutional liquidity, Kalshi aims to introduce leverage currently limited to its perpetual futures products; all event contracts on regulated exchanges are fully collateralized, requiring traders to fund positions entirely upfront.
- A Kalshi spokesperson told CNBC the company will restrict margin access to self-clearing members meeting capital thresholds and exclude sports, culture, and "mention" markets from leveraged opportunities.
- Prediction market rival Polymarket is also pursuing regulatory licenses for margin trading, as Kalshi accounts for more than 90% of prediction market activity with annualized volume climbing from $52 billion to $178 billion over six months.
- Industry growth faces scrutiny following a March 9, 2026, scandal and $54 million lawsuit concerning bets on strikes in Iran, underscoring regulatory challenges and reputational risks inherent in expanding leveraged betting products.
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Kalshi protocol asked CFTC to offer margin in event contracts, with restrictions and limited access to autoliquidating members
Kalshi filed an application with the CFTC to offer margin transactions in certain event contracts, a measure that seeks to attract institutional liquidity and bring its predictive markets closer to Wall Street practices.
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Bias Distribution
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