How do Polymarket contracts work?
Polymarket contracts are binary outcome contracts. How they work: Binary outcomes - Each market has YES and NO outcomes (typically).
Share mechanics - Each share pays $1 if your chosen outcome occurs, $0 if it doesn't. Price mechanics - Share prices range from $0 to $1, representing the probability of the outcome. Contract lifecycle: Creation - Markets are created by users or the platform and reviewed by Polymarket.
Trading - Shares can be bought or sold at any time before the event resolves. Resolution - When the event occurs, markets are resolved based on factual outcomes. Settlement - Winning shares are paid $1 each, losing shares become worthless.
Example: A contract on Will Trump win 2028? 65 means 65% probability. Buy 100 YES shares for $65.
If Trump wins, receive $100 (profit $35). If he loses, receive $0 (loss $65).