- Event contract
- A contract whose payout depends on whether a specific future event occurs.
- Implied probability
- The probability suggested by a market price. A 62 cent yes price roughly implies a 62 percent chance before costs and market frictions.
- Liquidity
- The amount of available buying and selling interest. Deeper liquidity usually makes prices more useful and trades easier to execute.
- Spread
- The gap between the best available buy price and sell price. Wide spreads can make a market expensive to trade and harder to interpret.
- Resolution criteria
- The rules that determine how a market settles. Clear criteria reduce ambiguity; unclear criteria can become the story.
- Volume
- The amount traded over a period. PMN uses volume as context for how much activity sits behind a price move.