Interactive Brokers, an automated global electronic broker, announced the expansion of Forecast Contracts into Europe today (Wednesday). These event-based contracts allow investors to take positions on clearly defined outcomes related to financial, economic, and climate indicators. Trading is available nearly 24 hours a day, 6 days a week.

Managing Events-Driven Risks

Interactive Brokers explained that forecast contracts offer a straightforward way to express a view or manage risk tied to a specific event. Each Forecast Contract is based on a simple yes-or-no question.

“Investors worldwide are increasingly seeking tools that help them manage event-driven risks with precision and simplicity,” said Milan Galik, Chief Executive Officer at Interactive Brokers. “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.”

Investors can trade through IBKR ForecastTrader, a dedicated web-based interface, or other interactive broker platforms. Contracts also pay an interest-like incentive coupon based on the market value of open positions. The incentive accrues daily and is paid monthly. The current annualized rate is 3.83 percent APY. This rate is subject to change and terms apply.

Forecast Contracts are available to eligible clients of Interactive Brokers LLC, Interactive Brokers Ireland Limited, Interactive Brokers Canada Inc., and Interactive Brokers Hong Kong Limited. ForecastEx LLC, a wholly owned subsidiary of Interactive Brokers and a CFTC-regulated Designated Contract Market, lists the product.

Expect ongoing updates as this story evolves.

Source: Finance Magnates