Predictive Market


DEFINITION of 'Predictive Market '

A speculative market that is based on speculations regarding events, such as who will win an election or whether a sports player will be resigned to a team. All of the "trades" involve a prediction with an unambiguous outcome.

BREAKING DOWN 'Predictive Market '

Many predictive markets are available to the public, and encompass predictions from who will win an Oscar, to trends in the video gaming industry. A predictive market is structured as a betting exchange, and participants bet (trade) on how they expect an event to unfold.

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  2. Speculation

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  3. Speculator

    A person who trades derivatives, commodities, bonds, equities ...
  4. Hedge

    Making an investment to reduce the risk of adverse price movements ...
  5. Speculative Capital

    The funds earmarked by an investor for the sole purpose of speculation. ...
  6. Market

    A medium allowing buyers and sellers of a specific good or service ...
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