A multi-outcome market groups several YES/NO contracts under one event, where usually only one outcome can win.
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Multi-Outcome Market: A multi-outcome market groups several YES/NO contracts under one event, where usually only one outcome can win.
What it means
A multi-outcome market groups several YES/NO contracts under one event, where usually only one outcome can win.
Example
'Who will win the Super Bowl?' lists a contract for each team. If the prices are 30¢, 25¢, 20¢ and so on, together they should add up to about $1.
Practical tip
If the YES prices add up to much more than $1, the market is pricing in fees and spread; much less, and something may be mispriced or rules may differ.
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