Prediction markets are built around forecasting outcomes, not placing wagers. These platforms let users express a view on future events by trading simple outcome-based contracts across topics like sports, politics, economics, technology, and pop culture. Contract prices move as new information enters the market, offering a real-time snapshot of collective expectations.
Our prediction market guides serve as a starting point for navigating the prediction market landscape. You’ll find practical explanations of how contracts work, what pricing signals mean, and how different market categories are organized. Each guide below dives into a specific area so you can explore prediction trading as an informed user.
A prediction market is a platform where people trade shares tied to future events. The price of each share reflects the market’s collective belief about how likely the event is to occur.
Yes, prediction markets are legal in all 50 states as long as our recommended platforms are licensed and regulated by the CFTC.
Yes. If an event doesn’t happen, your shares settle at $0, meaning you lose the amount you invested.
Common categories include politics, sports, finance, business, weather, and cultural events. However, every prediction market site picks its own events, so you will need to check that the site has what you’re looking for before joining.
Prices range from $0.01 to $0.99 and represent the implied probability of an outcome. For example, a price of $0.70 suggests a 70% chance of the event happening.
Prediction markets involve financial risk, and outcomes are never guaranteed. In light of this, trading should always be controlled and enjoyable. Keep your activity in check by following responsible trading practices such as:
Only trade money you can afford to lose and stop when your budget is reached.
Avoid increasing trade size or frequency to recover losses.
Don't trade when stressed, tired, emotional, or under the influence.
Take breaks and avoid letting trading interfere with daily life.
Learn how contracts, pricing, fees, and settlement work before trading.
Use spending limits, account history, or self-exclusion tools where available.
To make sure you get accurate and helpful information, this guide has been edited by Jason Bevilacqua as part of our fact-checking process.
Disclaimer: All of the information on this site is for entertainment purposes only. We do NOT accept bets of any kind. The information we provide is accurate and trustworthy to help you make better decisions. When you click or tap on a link on Dimers that leads to a third-party website that we have a commercial arrangement with (such as an online sportsbook), we may earn referral fees. Dimers does not endorse or encourage illegal or irresponsible gambling in any form. Before placing any wagers with any betting site, you must check the online gambling regulations in your jurisdiction or state, as they do vary. If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER.
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