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Learn how market prices work and calculate your potential returns.
Understanding how prices work on prediction markets is key to making informed trading decisions. This guide explains everything you need to know about odds and calculating returns.
Prices on PredictBet Pro range from 1 cent to 99 cents and represent the market's collective estimate of probability. A price of 65 cents means the market thinks there's a 65% chance the event will happen.
The market believes there's a 75% chance this event will happen. YES shares cost 75 cents and pay $1.00 if correct.
The market is evenly split. Both YES and NO shares cost 50 cents and offer the same potential return.
The market believes there's only a 25% chance. YES shares are cheap but risky, NO shares are expensive but safer.
Your profit depends on the price you paid and whether you're right. Each winning share always pays out $1.00.
If you buy 100 YES shares at 40 cents each (total: $40) and YES wins, you receive $100, making a $60 profit (150% return).
The difference between the best YES and NO prices. A tighter spread means more liquidity.
How easily you can buy or sell without moving the price. Higher volume markets have better liquidity.
The total amount traded on a market. High volume indicates strong interest and price discovery.
When a market resolves, winning shares are automatically paid out at $1.00 each.