Mechanics
How-to guides and explainers from the Predict Market Desk editorial desk.
Liquidity and spreads in prediction markets
The spread is the difference between the best price at which you can buy a contract and the best price at which you can sell it, quoted at the same…
Election vs sports markets: the mechanics
The first mechanical difference between an election market and a sports market is what the contract is actually about. A sports market usually resolves…
Oracles and market resolution
Resolution is the process that turns an open market into a settled one. A market poses a question — will a particular team win, will a price close above a…
How prediction-market prices form
A prediction market has to solve a matching problem before it can solve a pricing problem. Two people who disagree about whether an event will happen need…