How does Kalshi work?
Kalshi can look intimidating the first time you open a market, but the underlying mechanics are simple once you see the pattern. Here is the whole loop, from buying a contract to getting paid.
If you have used a stock brokerage app, the interface will feel familiar; most people place their first trade within minutes of funding an account.
- Every market is a Yes/No question with a defined resolution.
- Since the payout is always $1, a contract's price is the market's estimate of how likely the event is.
- Kalshi runs a central order book that collects everyone's buy and sell orders and matches them.
- You do not have to hold to settlement.
- When the event resolves, Kalshi pays $1 per winning contract straight into your balance and $0 for losing ones.
Contracts pay $1 or $0
Every market is a Yes/No question with a defined resolution. Contracts trade between 1 and 99 cents, and at settlement a correct contract is worth $1 and an incorrect one is worth $0. Your profit is the difference between what you paid and what it settles at.
Price equals probability
Since the payout is always $1, a contract's price is the market's estimate of how likely the event is. A contract at 30 cents implies roughly a 30% chance. When new information arrives, traders buy or sell, and the price (the probability) moves in real time.
You trade against other people
Kalshi runs a central order book that collects everyone's buy and sell orders and matches them. You are trading with other members, not against Kalshi. The best available prices and the quantity on offer are all visible in the order book before you trade.
You can exit any time
You do not have to hold to settlement. If the price moves your way, you can sell your contracts to lock in a profit, or sell at a loss to cut a losing position. This is what lets active traders flip contracts rather than just waiting for the event.
Settlement is automatic
When the event resolves, Kalshi pays $1 per winning contract straight into your balance and $0 for losing ones. There is no settlement fee, and you keep the full payout on winners.