FTX, a crypto derivatives exchange has introduced a fresh futures contract dubbed Trump-2020 (TRUMP) which will allow users to make money through prediction of the upcoming US Presidential election outcomes.
The announcement which was released on Thursday says that Trump future is set to expire to $1, that is, if President Trump is reelected for a second term in this year’s US Presidential election, if he is not reelected it will expire to $0.
The announcement also clarified that a candidate who will receive 270 or extra collegiate votes will be deemed to have been elected. FTX also stated that in the event that all the main media networks such as CNN, New York Times, 270towin, Fox as well as 538 predict that a given candidate will emerge the winner prior to all the states reporting their official election results, then FTX will then settle the contract according to the projections.
— FTX – Built By Traders, For Traders (@FTX_Official) February 7, 2020
The Trump-2020 will operate like all other futures provided by FTX, says the press statement. FTX users will have a chance to either go short or long depending on their own projections on whether Trump will be reelected.
The Binance backed FTX exchange also stated that the trading fees will be set on the basis of a users’ base rates as well as the contract’s price. The profits or losses will be settled using USD. The announcement said:
“The price of one contract of TRUMP should be equal to the probability that Trump wins reelection.
So if you think there's a 52% chance of Trump winning, then TRUMP should trade at $0.52; buying below there would be good, as would selling above $0.52.”
The press statement also noted that FTX services cannot be accessed in the US. In addition, FTX also clarified that Trump futures will not be traded by US residents as well as others in other jurisdictions like Singapore, United Kingdom (UK), European United (EU) and Hong Kong as well as other prohibited jurisdictions.