Orders, Liquidity and Trading
17 words you meet in prediction markets, each one explained plainly.
Closing a Prediction Market Position
Closing a prediction market position means reducing or removing exposure before the contract reaches final settlement. The exact mechanics depend o...
Effective Entry Price
Effective entry price is the actual average economic price at which a position is established after considering how the order was executed and rele...
Exit Liquidity
Exit liquidity refers to the available market liquidity that allows a trader to reduce or close a position at a reasonable price.
Liquidity Relative to Position Size
Liquidity relative to position size compares the size of a proposed trade with the amount of liquidity available in the market.
Mark to Market
Mark to market means valuing an open position using a current market based price rather than its original purchase price or eventual settlement value.
NO Price
NO price is the current market price associated with the NO outcome of a prediction contract.
Position Limit
A position limit is a restriction on the amount of exposure a participant may hold in a particular market or contract under the applicable platform...
Prediction Market Liquidity
Prediction market liquidity describes how easily contracts can be bought or sold without causing a large change in price.
Prediction Market PnL
Prediction market PnL measures the profit or loss generated by a prediction market position. PnL may be unrealized while the position remains open...
Prediction Market Position
A prediction market position is a trader's financial exposure to a particular outcome. The position's value can change as the market reprices the p...
Prediction Market Spread
A prediction market spread is the difference between the best available bid and ask prices for a contract.
Prediction Market Volume
Prediction market volume measures trading activity in a prediction market over a specified period or according to the platform's reporting methodol...
Price Impact
Price impact is the change in market price caused by executing a trade, particularly when the order is large relative to available liquidity.
Probability Spread
Probability spread describes the difference between the probabilities represented by available buying and selling prices in a prediction market.
Thin Market
A thin market is a market with relatively limited liquidity or trading interest around the current price.
Trading Before Resolution
Trading before resolution means buying or selling a prediction market position while the event remains unresolved.
YES Price
YES price is the current market price associated with the YES outcome of a prediction contract. In a straightforward binary contract paying $1 if Y...