A prediction market lists questions about the future — “Will this team win?”, “Will this happen before a date?” — and lets people buy “Yes” or “No” shares.
Prices work like probabilities
Shares trade between $0 and $1. A “Yes” price of $0.62 means the market sees roughly a 62% chance. If you buy 100 “Yes” shares at $0.62, you pay $62.
How positions settle
When the event resolves, winning shares pay $1 each and losing shares pay nothing. In the example, a correct call returns $100; a wrong one returns $0.