cryptopolitan.com
The U.S. election is the most anticipated political event in the world and is scheduled for November 5. dYdX Foundation has incorporated a perpetual market on its trading platform based on the upcoming elections to mirror Donald Trump’s performance when the ballot has been decided.
Futures trading platform dYdX announced the incorporation of a new perpetual market dubbed Trump Prediction Market Perpetuals on its trading platform. The perpetual market will allow traders and speculators to place advanced market order variants on Donald Trump’s candidacy. The traders will place these orders to speculate whether Donald Trump will win or lose the 2024 US presidential elections.
dYdX launches Trump Perpetual Market
The dYdX Foundation incorporated the Trump Prediction Market Perpetuals on the trading platform after successfully going through the governance process by the dYdX community on October 9th. The perpetual markets will allow dYdX users to place trades speculating the election results in a decentralized and non-custodial way. The market will also give the traders a chance to increase their position sizes and expand their exposure at any time.
Traders who believe Donald Trump will win the 2024 elections will take long positions on the market, while those who think Trump will not win the election will take short positions. Traders whose political insights align and their predictions fall true after November 5th have the potential to make great returns.
The Trump Perpetual Prediction Market has a perpetual leverage trading feature that allows users to capitalize on leverage to increase their trading power and hold trades without timelines. Users will also have the option to adjust their positions based on the changing election trends.
The perpetual market has risk management tools
The perpetual market also supports risk management protocols and tools to allow traders to execute their political insight trades with caution. The platform has risk management tools such as stop-loss orders for traders to mitigate risks and control their downside when the market goes against their prediction.
Traders can also cash out when the market goes in their favor. The market will also allow traders to take profits and cash out whenever the market goes in their favor. Traders should always take into account the dangers involved in leveraging positions on such narrative-driven events. However, the potential to amplify transactions with advanced order types offers additional opportunities for bigger gains.
The underlying TRUMPWINYES market on Polymarket is expected to cap at $1 if Trump wins on November 5th and becomes the next president of the United States. However, the market will settle at $0.00001 if he loses the elections. To place their trades, traders must connect an external crypto wallet like Metamask to the dYdX trading platform and deposit USDC stablecoin.
dYdX Foundation also announced that it may introduce more leverage prediction markets based on the real-world narrative-driven events unfolding globally. These events include global elections, sports, and cultural events. The secondary trading markets are expected to expand the trading landscape for dYdX community members, creating more trading opportunities.