Prediction markets vs trading: how they differ
An event contract is a traded product. Understand the contract, account and settlement mechanics before comparing it with another instrument.
Compare instruments, not labels
Prediction-market contracts can be bought and sold. Treating “prediction markets” and “trading” as opposites hides the questions that matter: what you hold, what determines settlement, how you close a position, and which account supplies access.
Read the event question and its resolution source before comparing the product with another financial instrument. A broker account, an exchange rulebook and a market headline answer different questions.
| Check | Research to read |
|---|---|
| What determines the result? | Read the event’s resolution conditions and source. Read the evidence |
| How can a position close? | Check the product’s own order and closing mechanism. Read the evidence |
| Who provides account access? | Identify the broker separately from the underlying exchange. Read the evidence |
| What does execution cost? | Separate contract price, trading fees and funding charges. Read the evidence |
Read the product evidence
These comparisons draw on product research checked on November 4, 2026. Product scope, access limits, citations and unresolved questions remain in each linked research page.