Prediction markets
Prediction markets, or betting markets, are a bit like putting your money where your mouth is. Instead of simply guessing what might happen, people buy and sell contracts based on real-world events, from election results and sports games, to interest rate decisions and scientific breakthroughs.
The price of each contract reflects what the market thinks the chances are of that event happening. If a contract is trading at 70 cents, the market is effectively predicting a 70% chance of success.
Some prediction markets like Polymarket are decentralised, and work on the blockchain.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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