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The Kalshi wiki

Everything you need to understand and trade Kalshi and prediction markets, in one place: how it works, the trading mechanics, the tax rules, free calculators, and a plain-English glossary. Built and maintained by ContractTax.

KALSHI AT A GLANCE
What it is
A CFTC-regulated exchange for binary event contracts, priced 1 to 99 cents.
Price = probability
A 65-cent contract implies about a 65 percent chance of yes.
There are fees
Trading fees apply and scale with price; they quietly eat thin edges.
No clean 1099
Kalshi does not issue a broker-style 1099-B; you report gains yourself.
Three tax treatments
Ordinary, Section 1256 (60/40), or gambling, and the choice can swing your bill.
No native stop-loss
Capping losses is on you, through sizing and discipline.
Free calculators →
21 tools, no signup
Taxes by state →
All 50 states + DC
Glossary →
58 terms defined
Trader quiz →
Find your type in 60s
Sharp Score →
Estimate yours, no upload
Basics
Is Kalshi legal?How much money do you need to trade Kalshi?Is your money safe on Kalshi?What is the minimum deposit on Kalshi?What is Kalshi?How does Kalshi work?Is Kalshi legit and safe?Dollars vs contracts on KalshiHow to get started on KalshiDepositing and withdrawing on KalshiKalshi promos and bonusesTrading on the Kalshi mobile appHow to read Kalshi oddsCan you actually make money on Kalshi?Is Kalshi gambling?How does Kalshi make money?How to trade on KalshiWhat states is Kalshi legal in?How old do you have to be to use Kalshi?
Trading mechanics
How long do Kalshi withdrawals take?How to read the Kalshi order bookLimit vs market orders on KalshiKalshi fees explainedThin order books and slippageMaker vs taker on KalshiHow to sell on KalshiUsing the Kalshi API and trading botsHow to export your Kalshi trade historyKalshi position limits, explained
Concepts
Is Kalshi a good investment?What are market makers?Kalshi prices as probabilitiesWhat moves Kalshi pricesExpected value and edgeAre prediction markets accurate?
Strategy
How to limit your losses on KalshiHow to make money on KalshiDay trading and flipping on KalshiHow to keep a Kalshi trading journalKalshi strategy for beginnersCommon Kalshi beginner mistakesArbitrage on KalshiBankroll management on KalshiHedging with KalshiKalshi parlays, explainedLimit orders on Kalshi, and how they save you the taker feeKalshi liquidity: why some markets cost more to tradeHow to get better calibratedHow many trades to prove an edge?The best markets to trade on Kalshi
Markets
How Kalshi sports markets workHow Kalshi markets settleHow Kalshi economic markets workHow Kalshi weather markets workHow Kalshi election markets workHow Kalshi crypto markets workKalshi 15-minute crypto markets, explained
Perpetuals
Kalshi Perpetuals explainedHow margin works on Kalshi PerpetualsThe Kalshi perpetuals funding rateLiquidation on Kalshi PerpetualsPerpetuals vs buying crypto (spot)Order types on Kalshi Perpetuals
Comparisons
Kalshi vs the stock marketKalshi vs a sportsbookKalshi vs PolymarketKalshi vs Robinhood event contractsKalshi vs PredictIt
Taxes · 28 guides
the part most Kalshi traders get wrong
THE BASICS
How Kalshi taxes work: the trader's guideWhat tax rate do you pay on Kalshi gains?Do you owe tax on open Kalshi positions?Are Kalshi gains capital gains?How prediction-market income is taxed
FORMS & FILING
Kalshi's CSV is in cents, not dollarsHow to report your Kalshi taxes in TurboTaxForm 6781: how Section 1256 treatment is reportedHow to calculate your Kalshi cost basisDoes Kalshi report your trades to the IRS?What happens if you don't report your Kalshi taxes?What tax forms do you need for Kalshi?Does Kalshi send a 1099?How to report Kalshi on your taxes
TREATMENTS & DEDUCTIONS
The Section 1256 60/40 rule, explainedDo you pay taxes on gambling winnings?Do wash sale rules apply to Kalshi?Tax-loss harvesting with KalshiAre Kalshi contracts Section 1256?Can you deduct your Kalshi losses?Do you owe quarterly estimated taxes on trading gains?
OTHER PRODUCTS & INCOME
How sports betting winnings are taxedKalshi vs a sportsbook: how the taxes differAre Kalshi rewards, bonuses, and interest taxable?Kalshi vs Polymarket: how the taxes differHow Polymarket gains are taxedRobinhood event contracts and taxesHow Kalshi perpetuals may be taxed
Taxes by state →How to file →Deadlines →Tax checklist →Tax calculator →
From reading to doing
Once you know how it works, ContractTax turns your own Kalshi history into a P&L breakdown, a Sharp Score, behavioral analytics, and ready-to-file tax numbers.
See the live demo →