How do Polymarket payouts work?
Polymarket payouts work as follows: Basic payout structure: When you buy a share and correctly predict the outcome, you receive $1 per share. If you're wrong, you receive $0.
Winning shares: Each winning share pays out exactly $1 regardless of when you bought it or what price you paid. The profit is the difference between $1 and your purchase price. 60 for a $60 investment.
If you win, you receive $100 total, earning $40 profit. If you lose, your 100 shares are worth $0, losing your $60. Settlement timing: Payouts are typically processed within a few hours after market resolution.
The actual transfer happens when you redeem your shares. Fees: Platform takes a small fee on each trade (built into the spread). Slippage may occur on large orders in low-liquidity markets.
Trading before resolution: You can sell your position before resolution at the current market price. This allows you to lock in profits or cut losses before the event concludes.