How Prediction Markets Work: An Educational Guide for Beginners

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2026-04-18 10:33:41 -

Prediction markets are systems where people trade on the outcomes of future events. Instead of simply stating an opinion, participants buy and sell positions tied to a question such as “Will candidate X win?” or “Will inflation exceed a certain level?” The market price then acts as a live estimate of how likely that outcome is. Academic work by Justin Wolfers and...

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