With less than a month until the midterm elections, Kalsi is introducing three features to election contracts to give traders more transparency about market activity and accuracy.
First, the platform provides tags that indicate which election markets have low trading volume. Kalsi defines this as the sub-$10,000 market. Prediction market experts warn that low-volume markets can lead to large price swings and widen buy-ask spreads.
Second, Kalsi’s proprietary election market has a Brier Score, which measures the probability of the market and the accuracy of the actual outcome.
Finally, the platform has launched an activity feed feature that provides a live view of individual transactions happening in election contracts.
Kalsi decided to offer these transparency features noting that election traders participate in markets that cover local races rather than national races. Karsi co-founder and CEO Tarek Mansour called the midterm elections “the first meaningful prediction market election,” noting that the platform’s election market grew six times faster than the soccer market this year compared to last year.
Kalsi’s internal data also shows that there are more people looking at the mid-term market than trading at a 5:1 ratio.
In July, the prediction market platform released an “intermediate hub” that allows anyone to view traders’ odds in markets related to the U.S. Senate and House elections.
Disclosure: CNBC and Kalsi have a commercial relationship that includes customer acquisition and minority ownership.
