How to Trade on Kalshi
Everything you need to place your first trade — and trade smarter over time. How prices work, YES vs NO, market orders vs limit orders, and how to calculate your potential profit.
Understanding Kalshi Contracts
Every market on Kalshi is a binary event contract. A contract asks a yes/no question — like "Will the Fed cut rates before December 2026?" — and resolves to $1.00 (YES wins) or $0.00 (NO wins) when the event occurs or the market expires.
Contracts are priced between $0.01 and $0.99. A price of $0.65 means the market believes there's roughly a 65% chance the YES outcome will occur. If you buy YES at $0.65 and it resolves YES, you receive $1.00 per contract — a profit of $0.35. If it resolves NO, you lose your $0.65.
YES vs NO — Which Side to Take?
When you open a market, you'll see two sides: YES and NO.
- Buy YES if you believe the event will happen. You pay the YES price and receive $1.00 if correct.
- Buy NO if you believe the event won't happen. The NO price = $1.00 − YES price. Buying NO at $0.35 pays $1.00 if the event doesn't happen.
Both sides have implied probabilities that sum to ~100% (minus fees). You're always trading against other market participants, not against Kalshi.
Market Orders vs Limit Orders
Kalshi offers two order types:
- Market Order — Fills immediately at the best available price in the order book. Use when you want guaranteed execution and liquidity is high. You pay slightly higher taker fees.
- Limit Order — You set the maximum price you're willing to pay. Your order sits in the book until another trader matches it or you cancel. Lower fees (maker discount) and better price control. Use in liquid markets when you're not in a rush.
Step-by-Step: Place Your First Trade
Browse markets
From the Kalshi home screen, browse markets by category: Sports, Politics, Economics, Crypto, and more. Sports markets make up ~90% of volume, but macro markets (Fed rates, S&P 500, inflation) offer great opportunities.
Select a market
Click on a market to see the full question, resolution criteria, and expiry date. Read the resolution rules carefully — they determine exactly how the market settles.
Choose YES or NO
Decide which side you think is underpriced. Click 'YES' to buy the yes outcome or 'NO' to buy the no outcome. The order ticket will open.
Choose your order type
Select Market Order (instant fill) or Limit Order (set your price). For beginners, market orders are simpler. For better pricing, use limit orders.
Enter the number of contracts
Enter how many contracts you want. Each contract costs the current price. Total cost = number of contracts × price. The order ticket shows your exact cost and maximum profit.
Review the fee
The fee is shown on the order ticket before you confirm. Kalshi's fee formula: 0.07 × contracts × price × (1−price), capped at $1.75 per 100 contracts. Use our fee calculator to estimate before trading.
Confirm the trade
Click Confirm. Your order is placed. For market orders, it fills immediately. For limit orders, it sits in the book until matched. You can track open orders and positions in your portfolio.
Market Categories on Kalshi
Tip: Use limit orders in liquid markets
Limit orders get a ~75% discount on taker fees. In markets with tight spreads (like major sports events), you can often get filled at or near your limit price. Use our fee calculator to see exactly how much you save.