KALSHI Policy
Designated Contract Market
Kalshi’s CFTC-regulated venue for trading binary event contracts (YES/NO) with USD settlements.
Detailed explanation
A Designated Contract Market (DCM) is Kalshi’s regulated exchange venue where binary event contracts trade. As a CFTC-regulated DCM, Kalshi operates a centralised limit order book (CLOB) and clearinghouse to settle YES/NO contracts in USD, not crypto. Users must meet KYC requirements and reside in eligible U.S. states to participate, with trades settled to $1.00 for winners and $0.00 for losers.
Worked example
Example: A market lists YES at 42¢ and NO at 56¢. The two prices sum to 98¢, creating a potential 2¢ edge if you buy both legs and hold to settlement (YES for $1, NO for $0), minus the per-contract fee.
FAQ
- What is a Designated Contract Market (DCM)?
- A DCM is a CFTC-regulated venue where standardized binary futures-like contracts (YES/NO) are traded and settled in USD.
- How does Kalshi implement a DCM?
- Kalshi operates a CLOB and clearinghouse to match trades and settle contracts according to written resolution rules.
See Designated Contract Market on a live Kalshi market
KalshiArb scans every open Kalshi market for arbitrage edges where YES + NO < $1.00. Plug in your Kalshi API key and start receiving alerts in under 5 minutes.
Related terms
- KALSHI FeeTrading fee charged on each order, applied per contract and per fill.
- CFTCU.S. regulator overseeing Kalshi as a Designated Contract Market (DCM) and enforcing trading rules.
- Geo RestrictionsKalshi eligibility rules by state and residency determine who can trade; check Kalshi’s published list for current limits.
- KYCKnow Your Customer; Kalshi requires identity verification (name, SSN, address) before trading.