GlossaryIntermediate
Prediction Market
A market where participants trade on the outcome of a future event.
A prediction market lets participants buy and sell positions on the outcome of a specific future event, with prices generally reflecting the market's aggregated view of that outcome's likelihood.
Crypto-based prediction markets typically settle using smart contracts and an oracle to determine the real-world outcome.
Examples
- A prediction market's price for a given outcome can be read as the market's implied probability estimate.
- Settlement depends on an oracle correctly reporting the real-world outcome.