Question 1

How are finance prediction markets different from buying shares in a company?

Accepted Answer

You do not own any part of the company. You hold Yes or No shares on a specific question, such as whether a stock closes above a price on a date or whether a deal is announced, and they are worth $1 or nothing at settlement.

Question 2

How is the percentage on a finance market formed?

Accepted Answer

It comes from the last trades and open orders of users on OCTORAX. When traders expect a stronger earnings report, they buy Yes and the price rises; when expectations fade, the price falls.

Question 3

What is the minimum to trade, and how am I paid?

Accepted Answer

The minimum order is 1 in shares, and the price of a share is between 1¢ and 99¢. If your outcome is correct, each share pays $1 when the market is settled.

Question 4

How are finance markets settled?

Accepted Answer

They follow the source in the rules: an exchange’s official closing price, a company’s filing or press release, or the index provider’s published value. The time zone and the exact price used are stated in each market.