
What Are Prediction Markets and How Do They Work?
Prediction markets turn questions about future events into tradable contracts whose prices change as participants buy and sell.
Understand prediction markets, event contracts, pricing, forecasting limits, trading risks, platform rules and tax recordkeeping.
10 guides

Prediction markets turn questions about future events into tradable contracts whose prices change as participants buy and sell.

Prediction market tax treatment can vary by instrument, platform, jurisdiction and taxpayer, so accurate transaction records come before selecting a...

Prediction market arbitrage seeks a locked payout from inconsistent prices, but only after contract equivalence, full execution and every cost...

Prediction markets and sportsbooks can cover the same event, but their pricing, counterparties, exits, costs and rulebooks can work differently.

Prediction-market legality depends on the platform, contract, jurisdiction, user and current regulatory status instead of the product label alone.

Decentralized prediction markets use wallets, smart contracts, crypto collateral and oracle systems to trade and settle event outcomes.

Prediction-market accuracy is the degree to which market-implied probabilities match outcomes across a defined set of...

Prediction market insider trading is not a single legal category. An informational edge is not automatically...

Prediction market odds begin with a contract price. The executable implied probability depends on the bid or ask available for...

A prediction market API is a software interface that exposes event, market, outcome, price, trade, and...
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