What is an event contract?

An event contract is a simple YES/NO question about the future, like Will the Fed cut rates in December? Each contract pays $1 if the answer is the one you picked and $0 if not.

Why it's useful

Because the payout is fixed, the price tells you something: it's the market's estimate of the chance that the event happens.

Key points

• You can buy YES or NO.
• YES price + NO price ≈ $1.
• You can sell before the market settles if someone is willing to buy.