Robinhood now lets retail investors trade prediction markets directly in its app, and this 13-minute tutorial from Head of Education Michael Obucina explains the full mechanics: contracts price between $0 and $1, representing implied probability, and pay out $1 at settlement if correct. The video covers approval requirements, order placement using limit orders, and how profit and loss scales with your position size and entry price.
The breakdown goes deeper than a simple explainer. Obucina walks through closing positions before settlement, which matters because you can lock in gains or cut losses without waiting for an event to resolve. The video also covers sports-specific contract types including game spreads, totals, custom combos, and individual player performance markets, each with distinct mechanics worth understanding before trading.
The risk section at 11:24 is the part most viewers will skip and shouldn't. These contracts are not available in all U.S. states, eligibility requirements apply, and total loss of invested capital is a real outcome, not a disclaimer formality. If you are considering trading these instruments, the original video is worth watching in full for the mechanics alone, not just the product pitch.
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