How do prediction Markets work?

in #news8 years ago

Let's talk about futures. A good example to explain is presidential elections:

  • If a futures contract, stating that Candidate X will become president trades at 70 cents, that means, according to the market, there’s a 70% chance that Candidate X will win the elections.

  • If Candidate Y’s contract trades at 30 cents, the market puts their chances at 30%.

  • If the contract that you bought supports the eventual outcome, you will get $1 for that contract.

  • If the outcome goes the other way, you get nothing.



Sort:  

You got a 2.11% upvote from @ipromote courtesy of @odigetti!
If you believe this post is spam or abuse, please report it to our Discord #abuse channel.

If you want to support our Curation Digest or our Spam & Abuse prevention efforts, please vote @themarkymark as witness.

Always good information thats why i follow you!!

Coin Marketplace

STEEM 0.04
TRX 0.32
JST 0.078
BTC 63172.75
ETH 1703.11
USDT 1.00
SBD 0.40