Liquidity
Last reviewed 2026-08-07
Liquidity — definition
How easily you can buy or sell shares without moving the price. Deeper books = tighter spreads + lower slippage.
Liquidity in a prediction market is usually measured by the size of resting orders near the mid-price. Thin markets quote wide spreads and fill larger orders at worse prices.
Major events (elections, Fed meetings) attract market makers and deep liquidity. Niche markets — including most college markets today — are thinner.
Learn more: How prediction markets work
See also
Frequently asked questions
What does liquidity mean in prediction markets?
How easily you can buy or sell shares without moving the price. Deeper books = tighter spreads + lower slippage.
How does liquidity work in practice?
Liquidity in a prediction market is usually measured by the size of resting orders near the mid-price. Thin markets quote wide spreads and fill larger orders at worse prices.
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