Glossary term
Event Contract
A financial contract that resolves on the outcome of a real-world event; the regulated framing of a prediction-market contract.
An Event Contract is a financial contract that pays out based on the outcome of a defined real-world event, such as an election, economic release, or sporting result. It is the regulated, CFTC-recognized framing of what is colloquially called a prediction-market contract. The terminology matters legally: "event contract" is the language under which these instruments trade on regulated U.S. venues. See Prediction Markets 101.