Market Prices

How Prices Are Determined

Prices on Betify reflect the collective sentiment of participants within each market. The probabilities shown are derived from the midpoint between buy and sell offers, creating a transparent and dynamic indicator of what the community believes is most likely to happen.

When a new market is created, there are no preset prices or odds. The price discovery process begins once traders start placing limit orders. A trader who wants to buy outcome tokens for “Yes” or “No” simply sets the price they are willing to pay. When the sum of both sides equals one dollar, the trade is executed and the first market price is established.

For example, if a trader places an order to buy “Yes” at 0.60, that order will be matched when another trader places a “No” order at 0.40. Together, those two trades create the initial pricing equilibrium of the market.

As the market develops, prices continue to adjust based on real-time activity and demand. Each new order influences the price by reflecting updated expectations from traders and participants. When there is a wide gap between buy and sell prices, the system uses the most recent executed trade as the market reference point to maintain consistency.

In Betify, prices effectively represent probabilities. If a market shows a 37 percent probability, it means the midpoint between current buy and sell orders is 0.37. These values continuously update as participants adjust their views, creating a live reflection of the market’s collective prediction.

Betify’s pricing mechanism ensures that every displayed probability is the product of genuine market behavior, guided entirely by the interaction between traders, data, and belief.

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