All markets on BettorEdge are based on some sporting event or future. Sporting events all result in 2 potential outcomes:
- Away Team Wins
- Home Team Wins
*Refer below for how ties are handled
On BettorEdge players buy or sell one of the 2 outcomes. Each outcome is represented as a single position. Players can purchase more than one by increasing the units they wish to purchase. Each unit is worth $1.
Player A buys 100 units of Away Team Wins for $100
Player B buys 100 units of Home Team Wins for $100
Price (What is the price of a predicted outcome?)
The price of a predicted outcome is the probability that it will occur. The probability of an outcome is always somewhere between 0% - 100%. The more likely the outcome, the higher the probability. Players set the price (probability) by creating orders with the maximum price they are willing to purchase at (or minimum price they are willing to sell at). This price will react to new information (i.e., a match is underway, or an injury occurs) until the event is completed.
Player A buys 100 units of Away Team Wins at 65% probability for $100
Player B buys 100 units of home Team Wins at 35% probability for $100
At this point you may be wondering, what is the impact of setting this price?
Read more about the Future Value to see how price setting on Predictive Outcomes impacts Future Value or Expected Value.