What Prices Mean and Don't Mean
Prediction market prices are signals only if understood: not promises or forecasts, just a snapshot of traders’ willingness to trade now.
Red Flags Wide Spreads and Thin Markets
Some markets trade smoothly; others look active but are hard to trade responsibly. Wide spreads and thin depth raise execution risk.
Spread and Slippage
Many costs are invisible. Spread and slippage can materially change outcomes. Learn what they mean, why they happen, and how to account for them.
Settlement Source and Expiration
Every market needs a clear settlement source and timing. Check close time, expiration, and how outcomes are confirmed before trading.
Biases Confirmation Bias and FOMO
Understand how emotions destroy portfolios. Learn to identify confirmation bias and the fear of missing out before you trade on hype.
Prohibited Conduct Insider Info and Manipulation
Protect your account and the ecosystem. We clearly define illegal market manipulation, insider trading rules, and severe consequences.
Budgeting and Position Sizing
Budgeting and position sizing set your max loss and volatility tolerance, reducing impulsive decisions. Assume uncertainty and build controls.
Loss of Control Warning Signs
Trading complex contracts can escalate into gambling. Recognize the psychological red flags of chasing losses and establish hard limits.
Politics Rules Risk and Settlement Risk
Political prediction markets can be liquid and informative, but settlement is tricky: definitions, timing, slow official outcomes vs fast narratives.