Understanding Markets
Learn how prediction markets work, how prices reflect probabilities, and how to interpret market data for better trading decisions.
How Prediction Markets Work
Prediction markets are exchanges where you trade shares based on the outcome of future events. Each market has two outcomes: YES and NO.
Binary Outcomes
Every market resolves to either YES (1.00) or NO (0.00). There are no partial outcomes — it's all or nothing.
Full Collateralization
YES + NO shares always equal $1.00. If you own both a YES and NO share, you're guaranteed to receive $1.00 regardless of outcome.
Price as Probability
Market prices directly reflect the crowd's estimated probability of each outcome:
Interpreting Prices
A YES share priced at $0.65 means the market estimates a 65% probability that the event will occur. A NO share would be priced at $0.35.
Finding Value
If you believe the true probability is higher than the market price, buying that share has positive expected value.
Market Resolution
Markets resolve when the predicted event either occurs or the deadline passes:
Automatic Resolution
Crypto price markets resolve automatically based on oracle data at the specified candle close time.
Payout
Winning shares receive $1.00 USDC.e each. Losing shares expire worthless. Payouts are automatic — no action required.
Redemption
After resolution, you can redeem your winning shares for USDC.e through the trading panel or automatically.
Market Selection
Polyblock offers various crypto price prediction markets:
Asset Pairs
Trade predictions on BTC, ETH, SOL, and other major cryptocurrencies.
Timeframes
Choose from 5-minute (5m), 15-minute (15m), or 1-hour (1h) prediction windows. 5M is available for Bitcoin. Shorter timeframes are more volatile but resolve faster.
