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- Stay away from the platform if the license information isn’t easy to find.
- We can use a simple example to explain how prediction markets work.
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In sports prediction markets, you don’t need to beat the bookmaker’s margin. If you can win at least 55% of your bets, you’ll profit, but that’s challenging. At that point, you could sell your 1,112 contracts for $0.55, and you’ll be paid $611.60. If another team wins, you’ll lose your $100 investment. We can use a simple example to explain how prediction markets work. Using the same exampke from our “yes” scenario, if you don’t think TCU will win you can buy a “No” contract for $0.50.
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