EducationMarch 28, 20268 min
What Are Prediction Markets? A Beginner's Guide
Prediction markets let you trade on real-world outcomes — elections, economic data, sports. Here's how they work and why traders are paying attention.
Prediction markets are exchange-traded contracts whose price reflects the crowd's probability estimate of a real-world event. If a contract for "Fed rate cut in June" trades at $0.65, the market believes there's a 65% chance it happens. Unlike polls or pundit forecasts, prediction markets put real money behind every estimate — which tends to produce remarkably accurate probabilities.
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