Kalshi does not provide investment or trading advice or make any other claim to the veracity of the contents described herein and provides this article solely for the convenience of its members. Trading on Kalshi involves risk and may not be appropriate for all. Members risk losing their cost to enter any transaction, including fees. You should carefully consider whether trading on Kalshi is appropriate for you in light of your investment experience and financial resources. Any trading decisions you make are solely your responsibility and at your own risk. Past performance is not necessarily indicative of future results.

0DTE contracts, or zero-days to expiration, are contracts (options, futures, or swaps) that expire on the same day they are traded. This means that traders have a very limited window of time to make a profit or loss on their investment. As a result, 0DTE contracts are considered to be a high-risk, high-reward trading strategy.

There are a number of reasons why traders might choose to trade 0DTE options. One reason is that they offer the potential for significant profits. If the underlying asset moves in the direction that the trader predicts, they can make a large profit on a small investment. However, if the asset moves in the opposite direction, they can lose all of their investment.

Another reason why traders might choose to trade 0DTE contracts is that they can be used to hedge against risk. For example, a trader who is long the S&P might buy a 0DTE put option to protect their downside (or purchase Kalshi’s S&P contracts at a lower price). If the S&P falls, the put option will increase in value, or the Kalshi contract resolve to yes, offsetting some of the losses on the stock.

0DTE on Kalshi

Kalshi offers a number of daily contracts that can be traded as 0DTE contracts, including:

• Nasdaq and S&P contracts
• Weather markets
• WTI oil contracts
• 10-year treasury daily yields

You can find them by going to the markets page, clicking Cadence, and then selecting Daily.

0DTE risks

0DTE contracts can be a powerful tool for traders who are willing to take on risk. However, they are not suitable for all investors as they move quickly and require vigilance.

Here are some of the risks associated with trading 0DTE contracts:

• High risk of loss: 0DTE contracts expire on the same day they are traded, which means that traders have a very limited window of time to make a profit or loss on their investment.
• Limited liquidity: 0DTE contracts are sometimes illiquid, which means that there may not be enough buyers or sellers to make a trade at a fair price. This can make it difficult to exit a trade if the market moves against you.
• Gamma risk: In the case of 0DTE options, Gamma risk is the risk that the price of an option will change more than expected in response to a small change in the price of the underlying security. Gamma risk is particularly high for 0DTE contracts, which means that even a small change in the price of the underlying security can result in a large change in the price of the option.

If you are considering trading 0DTE contracts, it is important to understand the risks involved. You should also have a clear trading plan and risk management strategy in place before you start trading.

Some tips for trading 0DTE contracts:

• Have a clear trading plan. Before you start trading, decide what your trading goals are and what your risk tolerance is.
• Use risk management techniques. Use stop-losses, notifications, and other risk management techniques to protect your profits and limit your losses.
• Do your research. Before you trade any 0DTE contracts, make sure you do your research and understand the risks involved.

0DTE contracts can be a powerful tool for traders who are willing to take on risk. However, they are not suitable for all investors. Traders who are new to contracts trading should start with less risky strategies before attempting to trade 0DTE contracts.