Binary market
Last reviewed 2026-08-07
Binary market — definition
A market whose only possible outcomes are YES or NO. The default and most common contract type.
Binary markets are the cleanest contracts to trade and reason about: one share pays $1 or $0.
Most political, regulatory, and college-related markets are binary.
Learn more: Event contracts explained: what they are and how they work
See also
Frequently asked questions
What does binary market mean in prediction markets?
A market whose only possible outcomes are YES or NO. The default and most common contract type.
How does binary market work in practice?
Binary markets are the cleanest contracts to trade and reason about: one share pays $1 or $0.
Sources & further reading
- CFTC — Event contracts explainedU.S. Commodity Futures Trading Commission
- Kalshi — how prices and settlement workKalshi
- UMA Optimistic Oracle documentationUMA Protocol
Last reviewed 2026-08-07 · CollegePredictionMarkets.com