A trading company originally founded in New York in 2021, Railbird Exchange was recently gaining a license to operate as a federally-regulated prediction market. In June, the Commodity Futures Trading Commission (CFTC) granted Railbird a licence to operate as a designated contract market. The site is expected to launch later this year.
Even though Railbird Exchange has yet to go live, a major player in the betting industry is already reported to be going after Railbird Exchange. There is speculation that US sports betting giant DraftKings is making a bid to purchase Railbird Exchange as a gateway into the prediction exchange market. Neither company has commented on the rumors.
People over the age of 18 with valid identification and a US bank account are legally eligible to apply for a Railbird Exchange account. Businesses and financial institutions may also apply to participate in trading.
What Is Railbird Exchange?
Railbird is a federally regulated prediction market that allows users to trade event contracts on the outcomes of real-world events. The events can be anything from economic indicators and public policy to entertainment, or even cultural trends.
The site will allow users to trade event contracts. People who take out contracts must take a position on the outcome of these real-world events. You either back the event to happen, or not to happen.
Rather than a state gambling commission, all Railbird Exchange trading will be regulated by the federal Commodities and Futures Trading Commission (CFTC), which regulates derivatives markets in the United States. It is not classified as gambling under US federal law. Railbird also partnered with QC Clearing, LLC, a registered clearing house, to ensure transaction integrity and market stability.
How Does Railbird Exchange Work?
With Railbird Exchange, you buy and sell event-based contracts to express your view on whether something will or will not happen. A prediction market is a trading venue where participants buy and sell contracts linked to future outcomes. Prices on these predictions will reflect the market’s collective belief about the likelihood of an event occurring. The prediction site collects a fee for arranging the trade.
For example, suppose a contract was paying out $1 if rainfall in Los Angeles exceeded one inch on a certain date. If that prediction market is trading for $0.30, the market is effectively assigning a 30% probability to that outcome.
Users trade these contracts as prices move, based on changing information and public sentiment. Payout occurs when the event is resolved, either on the scheduled settlement date or earlier if the result is known.
While allowing individuals to earn money by trading on future events, Railbird also gives businesses a tool to hedge real-world risks. Market prices tend to reflect collective expectations with more accuracy than polls or forecasts. For instance, a ski resort could use a weather contract to offset losses caused by a low amount of snowfall.
By harnessing trading activity across finance, policy, environment, entertainment, and sports verticals, Railbird Exchange will generate real-time insights that will allow individuals and businesses to manage outcomes in an ever-changing world.
Available Markets
While we won’t know for certain which specific markets will be offered for trading by Railbird Exchange until the site officially launches, there are logical paths that are likely to be followed.
For instance, in sports, it could be a trade involving whether an NFL team will win the Super Bowl or an MLB club will win the World Series. Politics might be a trade regarding the next US Presidential election. Early trades would involve backing or fading a party. As election day draws near and candidates are determined, you’d be able to trade on their chances of winning the Oval Office.
There could be trades on impending policy decisions made by the US government. Trades may relate to the probability of someone being appointed to a President’s cabinet, for example.
It might be a trade about whether the value of the US dollar or Bitcoin will increase or decrease during a predetermined period. Prediction markets can be offered on whether the value of a stock will go up or down.
In entertainment and pop culture, possible trades could involve Oscar winners, or whether a celebrity’s baby will be a boy or a girl.
Legal States
Railbird Exchange will be available in all 50 US states, including New Jersey. The bonus code and promotions will be announced on NJ.Bet. Meanwhile, you can explore the best NJ sportsbooks and casino bonuses here.
Customer Support
At the present time, Railbird Exchange customer support can be contacted only by email. You can reach them at support@railbirdexchange.com with questions or to get any other assistance you require. Railbird Exchange customer service agents vow that they will respond promptly to offer help.
