Uploaded December 2025 | Updated September 2026, 1 day ago

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🔹 Prediction markets focus on event outcomes with binary, fixed payoffs
🔹 Traditional markets involve assets like stocks and bonds with varying returns such as dividends, coupons, and capital appreciation
🔹 Prediction contracts expire when the event occurs, unlike perpetual traditional instruments
🔹 Price discovery in prediction markets reflects implied probabilities
🔹 Traditional markets rely on models like discounted cash flows and risk analysis
🔹 Regulatory treatment differs as prediction markets are often classified as gambling or specialised derivatives

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