Glossary

A trading strategy that profits from price inconsistencies across related markets.

An algorithm that sets prices and provides liquidity without needing matching counterparties.

A type of market where each contract hasonly two possible outcomes, typically Yes / No or True / False.

A market whose outcome depends on another event.

A tradable instrument tied to the outcome of a future event.

The probability inferred from a contract’s price (e.g., a price of 0.65 implies a 65% chance).

The amount of trading activity in a market. Higher liquidity generally improves price reliability.

A participant who supplies capital to improve trading availability and market depth.

A widely used automated pricing mechanism for prediction markets that guarantees bounded losses for the market maker.

A participant that provides continuous buy and sell prices to ensure trading is possible.

The current trading price of a contract, commonly interpreted as the probability of the event.

The predefined data source used to determine the outcome of an event (e.g., official statistics).

A market with several mutually exclusive outcomes (e.g., “who will win”).

A list of buy and sell orders used in exchange-style prediction markets.

The process through which trading activity determines the market price.

The process by which contracts are resolved and paid out after the event outcome becomes known.