Contract
Last reviewed 2026-08-07
Contract — definition
A single tradable unit on a prediction-market exchange — usually one YES or NO share with a $1 max payout.
'Contract' is the legal/regulatory name. 'Share' is the trader name. They mean the same thing in binary markets.
Multi-outcome markets have one contract per outcome, all settling against the same $1 budget.
Learn more: How prediction markets work
See also
Frequently asked questions
What does contract mean in prediction markets?
A single tradable unit on a prediction-market exchange — usually one YES or NO share with a $1 max payout.
How does contract work in practice?
'Contract' is the legal/regulatory name. 'Share' is the trader name. They mean the same thing in binary markets.
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