Imagine claiming a profit for predicting the outcome of your favorite sports with less than $1? Well, you don't have to anymore, as Robinhood sports contracts make this happen. Simply purchase "Yes" or "No" contracts and wait for the outcome.
Yes, it's that simple! What's more, if your prediction is correct, all your shares settle at $1, regardless of the purchase price. If you are new to Robinhood sports contracts, you are on the right page. In this guide, I'll explore everything you need to know about Robinhood sports contract rules and metrics, and tips to get started. Let's begin!
Pros and cons of trading on Robinhood sports contracts
- Markets are simple to understand
- Entry cost is less than $1
- Over 12 markets to trade on
- Availability varies by US state
Overview of the Robinhood sports contracts
I get it, you are excited and want to jump right in. However, it is important to learn about the platform you want to make predictions on. Here's what I discovered about this platform.
| Market type | Prediction market |
| Owner | Robinhood Markets, Inc |
| Launch date | 2013 |
| Available sports | 15, including soccer, football, tennis, chess, and more |
| Accessibility | PC, and dedicated apps on iOS and Android devices |
| Eligibility | Traders who are at least 18 years old |
What are Robinhood sports contracts?
If you are picturing a signed contract that players use to get into a new team, stop right there.
Robinhood sports contracts are not as complex. They allow you to predict the outcome of a sports event by buying "Yes" or "No" event contracts. Here's what a typical sports contract is at Robinhood:
- Who will win the World Cup game against the USA and Belgium?
- Which team will LeBron James go to next?
If you feel the USA will win the game, purchase "Yes" contracts. Believe they'll lose? Purchase "No" shares instead. That's all there is to it.
Now, here's the fun part. If your prediction is correct, the value of your winning shares will settle at $1. But if they are wrong, they settle at $0. The amount you pay for the event contract will determine whether you make a profit or incur a loss.
Easy to understand, right? In fact, this is no different from how Polymarket works.
How are prices determined at Robinhood?
As I earlier mentioned, shares come with "Yes" and "No" options. Each of these comes with a price ranging from $0.10 to $0.99, which is the amount you'll pay per share you purchase.
But here's where things take another unique approach. Aside from the share prices, you'll also find a percentage attached to outcomes. This typically ranges from 1% to 99% and is dependent on how traders collectively feel about an outcome. Put simply, it is the traders' level of confidence.
If an event contract is priced at $0.90, it means traders believe there is a 90% chance the outcome will occur. This confidence determines the share price since more traders will purchase it.
However, this is not a guarantee of an outcome. It is only what traders collectively believe will occur. You get the drift? They are also making predictions, meaning it could go any direction. In fact, this is what causes slippage on prediction markets. This is a situation where the price you expect differs from the final price once the trade is successful. For a more extensive explanation, read my guide on what slippage means on prediction markets.
Robinhood sports predictions
Trade event contracts on the go
How to start trading Robinhood sports contracts
It may look daunting, but believe me, purchasing sports contracts on Robinhood is pretty straightforward. I was able to do this within minutes following these steps:
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Click any of the banners on this page to visit the Robinhood page
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Click on the "Sign Up" button and enter your name, email address, and preferred password
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Click "Continue" and on the next page enter your address, valid phone number, and last four digits of your SSN
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Link your bank account, which will be used to fund it
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Submit your application and wait till the operator is done with the review
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Once approved, transfer some funds, pick a sports event from the list, and start trading
Keep in mind that Robinhood will require you to verify your identity by uploading a valid government-issued ID and other required documents.
Robinhood features various sports contracts
One of the cool aspects of Robinhood is that it does not focus on a single sport. Instead, it offers event contracts across 15 markets, providing more than enough opportunities to trade trending events. Some of the contracts on the following:
- Soccer
- Baseball
- Tennis
- Basketball
- Chess
- Racing
- Pro Football, and more
Look at it this way. If there's a trending sport, there's most likely a league available to trade on at Robinhood. Sounds fun, right?
Robinhood offers more than sports contracts
Sports contracts not your thing? Not a problem, as Robinhood offers event contracts on 12+ markets. You can make predictions on politics, economics, entertainment, elections, technology, and even cryptocurrencies. So, whether you want to trade on the short- or long-term price movement of cryptocurrencies, or who is going to win the next election, there's probably an option for you at Robinhood.
Tips for trading Robinhood sports contracts
There's something I had to learn about prediction sites the hard way. Not every prediction will come out accurate, regardless of what traders feel. That said, there are a few tips you can implement to enable you to make smarter decisions when trading on this platform.
🔍 Do your ground work
This may seem like an obvious strategy, but it's also the easiest for traders to overlook. At least, I have at some point. So, what does it mean exactly? Simple. Before you purchase any sports event contract, spend a couple of minutes studying the event. Check out the history of both teams and their current form.
Are there injuries? Any players missing the next game? Insights like this can have a huge impact on your prediction and the overall outcome. The best part? This strategy applies to the Robinhood election markets too.
😌 Avoid emotions
I get it, making a prediction on your favorite team that comes out wrong can be a painful experience. There's some passion involved, and backing them may always seem like the obvious choice. However, this sort of thinking needs to be avoided on prediction sites.
While supporting your favorite team is not necessarily bad, do so only if your research indicates they are the right option. Don't make trades based on emotions; make them based on facts. This applies to every type of emotion. Avoid making trades when you are overconfident, frustrated, sad, or unhappy. The outcome is rarely what you expect.
🚪 Know when to exit the market
There's this old saying, "Always leave when the ovation is loudest." This is one of my favorites, and I apply it when trading on prediction markets. That being said, you don't have to wait for a prediction market to settle before you sell off your shares. Not sure of where the market is headed? Sell your shares! Robinhood allows you to do this, and it is a feature I always leverage. Sometimes, locking in some profit and avoiding a total loss is a better strategy.
💰 Stick to your budget
As it should be clear by now, trading predictions at Robinhood carries risk. You’ll lose all the money you spent if you hold a contract until it settles as incorrect. Selling early can help limit your losses, but you can only sell if there are other traders willing to buy, meaning you’re not always guaranteed to be able to leave a position. For these reasons, make sure you trade responsibly, stick to your budget, and never trade predictions with money you can’t afford to lose.
Conclusion: Robinhood’s sports markets are excellent
The sports markets at Robinhood are easy to use. Simply purchase "Yes" or "No" share contracts on your favorite sports event, and you are good to go. Even better? Contracts cost less than $1!
Want a break from sports contracts? Not a problem either. Robinhood features over 12 markets, from cryptocurrencies to technology. If you are ready to get started here, click any of the links on this page and follow the prompts.
Robinhood sports contracts FAQs
What are Robinhood sports markets?
These are prediction markets that let you trade on the outcome of sports events by purchasing "Yes" or "No" event contracts. If your prediction is correct, your event contracts settle at $1, while they settle at $0 if you are wrong.
Are the Robinhood sports prediction markets available in the US?
Absolutely! However, this is only the case if you reside in the US states where Robinhood is available. I suggest reading through the platform's terms and conditions page to confirm you are in an available state before registering.
Does Robinhood only offer sports contracts?
No, it does not. You'll find event contracts on over 12 markets, including technology, cryptocurrencies, culture, and entertainment, among others. The best part? They all focus on trending events, which add to the excitement.