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STORY: Shares of Robinood hit a 52-week high on Monday, after the trading platform announced it will allow users to bet on the potential outcome of the U.S. presidential election between Kamala Harris and Donald Trump.

:: Robinhood Markets Handout

Robinood said it will start rolling out election event contracts on Monday to a limited number of users, who must be citizens of the United States.

The contracts offer investors on its platform a chance to profit from speculating on the results of the tightly contested race.

So-called event derivatives trading involves buying and selling contracts that allow traders to speculate on the outcome of specific events such as elections, economic data releases, or policy decisions.

These types of derivatives, which are relatively new and generally considered high risk compared to traditional financial instruments, have gained traction in recent years and Robinhood is seeking to capitalize on the growing retail demand for betting products.

:: PredictIt.org

PredictIt, a real-money prediction market platform where users can buy and sell shares on the outcomes of future events, has also gained significant popularity this year in the lead-up to the election.

A federal judge in September ruled to allow Americans to use derivatives for event betting, marking a setback for the U.S. Commodity Futures Trading Commission, which had sought to block them.

An appeals court upheld the order in October.

:: Robinhood Markets Handout

The addition of this service is part of a move by Robinhood to become a comprehensive financial services provider.

Investor enthusiasm has fueled a year-to-date jump of more than 100% in the company's stock.