Prediction Markets

Prediction markets are platforms where individuals can buy and sell bets on the outcomes of future events, like elections or sports results. Participants trade contracts based on their predictions, with prices reflecting the perceived probability of each outcome. For example, if many people believe a candidate will win an election, the price for that outcome will rise. These markets leverage the collective knowledge and insights of participants to provide a forecast for future events, often proving to be surprisingly accurate as they aggregate diverse opinions and information.