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Markets & Resolution

How Market Prices Work

Why a Polymarket price is a probability, where it comes from, how the order book and the spread set what you actually pay, and what a price does not tell you.

Last updated August 22, 2026

Every share on Polymarket pays exactly $1.00 if its outcome happens and $0 if it does not. That one rule is what makes a price readable as a probability. A share trading at 30¢ is the market saying there is roughly a 30% chance. Nothing more complicated is going on underneath.

The price is the market's probability

Because the payout is fixed at $1.00, the only thing left to negotiate is how likely the outcome is. If enough people think an event is a coin flip, they will pay up to about 50¢ for a share and no more, because paying more than 50¢ for a coin flip loses money over time. Push the odds up and the price follows. That is why prices are quoted in cents and why they sit between 1¢ and 99¢. A price of exactly $0.00 or $1.00 would mean the question is already settled.

Read it in the other direction too. Buying at 30¢ means you need this outcome to happen more than about 30% of the time to come out ahead. That is the whole bet, stated in one number.

What a price means, and what it pays
Share priceImplied probability100 shares costPayout if it happensPayout if it does not

10¢

about 10%

$10

$100

$0

30¢

about 30%

$30

$100

$0

50¢

about 50%

$50

$100

$0

75¢

about 75%

$75

$100

$0

92¢

about 92%

$92

$100

$0

Where the price comes from

Polymarket does not set prices. Traders do, through an order book. Buyers post the prices they are willing to pay, sellers post the prices they will accept, and when the two meet a trade happens. Nobody is standing behind the market guaranteeing you a quote, which is why a price is only good for as many shares as are actually posted at it.

Bid, ask, spread, and depth

Four numbers describe the book at any moment. The last traded price you see on a card is a summary of them, not a replacement for them.

Bid

The highest price a buyer is currently willing to pay. This is what you get if you sell right now.

Ask

The lowest price a seller is currently willing to accept. This is what you pay if you buy right now.

Spread

The gap between the two. On a busy market it can be a single tick, which is 1¢. On a quiet one it can be 5¢ or more, and that gap is a real cost the moment you enter.

Depth

How many shares sit at each price. The best price is only available for the size posted at it. Buy more than that and the rest of your order fills at the next price up.

Why prices move

Prices move for one reason. Someone was willing to trade at a different price than the last person. What makes them willing varies. News arrives, a poll lands, a game turns, someone with a large position needs to get out, or a big buyer clears the cheap shares so the next buyer has to pay more. In an active market all of that happens in seconds, which is exactly why a copied trade can fill a step away from the price the trader you copied got.

What a price does not tell you

Four things the number leaves out

It is not a forecast from anyone in particular

A price is the net of everyone trading, including people who are guessing. A market can be badly wrong and stay wrong until somebody with better information turns up with money.

It says nothing about how much you can trade

A 30¢ price with 40 shares behind it is a completely different market from a 30¢ price with 40,000 shares behind it, even though the number on the screen is identical.

It carries no sense of time

A market at 30¢ six months out and one at 30¢ with an hour left describe the same probability and completely different risk of moving before you can react.

It is not adjusted for cost

The screen price is before Polymarket's own fee on markets that have one, and before Polycopy's flat 0.5%. Your break-even is always a little above the price you paid.

Why do prices never reach $0.00 or $1.00?

Because a share is only worth the full $1.00 once the outcome is certain, and until a market resolves there is always some chance it goes the other way. Polymarket quotes prices between 1¢ and 99¢. When the market resolves, winning shares pay $1.00 and losing shares pay $0.

Why do the YES and NO prices add up to about $1.00?

Because exactly one of them will pay $1.00. If YES trades at 70¢, NO has to trade near 30¢. Otherwise you could buy both sides for less than $1.00 and be guaranteed a profit, and traders close that gap almost instantly.

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