This new platform allows you to place bets on whether Donald Trump will win or lose the election.
What Is the TRUMPWIN-USD Market?
In this prediction market, you can place a “yes” or “no” bet on Trump winning the election. Each market will either settle at $0 or $1 based on the election outcome. The price you see reflects how much it will cost to make your bet.
For example, if the market price for Trump winning is $0.58, that means you think he has a 58% chance of winning. You can also go long (betting on him to win) or short (betting on him to lose) with up to 20x leverage. This is more flexible than traditional prediction markets.
So the Trump perp prediction market is now available on dYdX.
If you’re curious to see how it works, give this video a watch 🤝
➡️ https://t.co/HEH4RdKMEl pic.twitter.com/fGDetn7DHo
— dYdX (@dYdX) October 16, 2024
How Does the Settlement Work?
Here’s the scoop: around November 5th, when the election results are in, the market will settle at one of two prices:
- $1 if Donald Trump wins the election.
- $0 if he loses.
Let’s say you decide to put down $10,000 on Trump to win with 20x leverage. If he wins, and the price moves from $0.58 to $1, your position value would be $200,000. Here’s how the math works out: Profit = (1 – 0.58) × 200,000 = 0.42 × 200,000 = $84,000.
dYdX just launched a TRUMPWIN-USD Prediction Market.
This integration will give users the opportunity to bet on the US election with leverage. You can place either a yes or no bet on a market, with each market either settling to $0 or $1 and the price of the bet is the price it… pic.twitter.com/oLwk9x9GgY
— Route 2 FI (@Route2FI) October 16, 2024
So, if Trump wins, your total profit from a $10,000 bet would be $84,000. But hold your horses—there’s a catch. With 20x leverage, your liquidation price would be close to a 5% move against your position. This means if the price drops to around $0.551, you could lose your bet.
Selling Your Position
Another cool feature of this trading market is that you can sell your position at any time. If the market price goes up, you can lock in your profits before the election results come in.
Trump takes the lead in the U.S. election 👀
just gna leave this here
Visit dYdX ➡️ https://t.co/oCQIGSs0p5 pic.twitter.com/Sg11RW67WF
— dYdX (@dYdX) October 16, 2024
If you’re already holding “yes” shares on another platform, Polymarket , and are worried about losses, you can protect yourself by opening a short position on dYdX. This is called a delta-neutral strategy, and it can help you earn from funding rates while minimizing risk.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
