The Kalshi cheat sheet

Everything that matters, on one page. Bookmark it. Each block links to the full guide if you want the detail.

The basics
  • •Kalshi markets are binary event contracts.
  • •Priced 1 to 99 cents. Each pays $1 if the event resolves yes, $0 if no.
  • •Your max loss is what you paid; your max gain is $1 minus what you paid, per contract.
What is Kalshi? →
Price = probability
  • •A contract's price is the market's implied probability.
  • •65 cents implies about a 65% chance of yes.
  • •Your edge exists only when your estimate beats the price by more than fees.
Prices as probability →
Order types
  • •Limit order: set your price, wait for a fill.
  • •Market order: fill now at the best available price.
  • •No native stop-loss. Capping losses is on you.
Order types →
Maker vs taker
  • •Maker: post a resting order, add liquidity, usually lower fee.
  • •Taker: cross the spread, fill instantly, pay for immediacy.
  • •In thin books, this also affects your fill price.
Maker vs taker →
Fees
  • •Trading fees apply and scale with price and size.
  • •Small per trade, but they compound at volume.
  • •Always factor fees into whether an edge is real.
Fees explained →
Settlement
  • •Contracts are cash-settled at $1 (correct) or $0 (incorrect).
  • •You can also exit early by selling before settlement.
  • •Proceeds minus cost basis (with fees) is your gain.
How markets settle →
The CSV gotcha
  • •Kalshi's exported CSV stores values in cents, not dollars.
  • •Divide monetary columns by 100 before you do anything.
  • •Fees are in cents too. Quantity is not.
Cents vs dollars →
Three tax treatments
  • •Ordinary income: full gain at your marginal rate. Simplest.
  • •Section 1256: 60/40 split. Lowest rate if it applies (contested).
  • •Gambling: ordinary income with capped loss deduction. Usually worst.
How Kalshi taxes work →
Key tax forms
  • •Section 1256 -> Form 6781 -> Schedule D.
  • •Capital-style -> Form 8949 + Schedule D.
  • •Ordinary -> Schedule 1. Aggressive stance -> Form 8275 disclosure.
  • •No 1099-B for trades: you report yourself.
How to report →
Survival rules
  • •Risk only a small percent of bankroll per trade.
  • •Set a session loss limit and a stop-after-N-losses rule.
  • •Most damage is behavioral: tilt, oversizing, late nights.
Limiting losses →
Turn the theory into your numbers
ContractTax applies all of this to your actual trade history: P&L, a Sharp Score, behavior analysis, and tax-ready figures.
See the live demo →