Prediction markets · Pro
Prediction-market making
Also searched as: event market maker
What does Prediction-market making mean?
Prediction-market making provides buy and sell quotes in event contracts with the aim of earning spread or eligible liquidity incentives. Filled quotes create inventory and outcome risk.
Example
A trader quotes both sides but only the buy order fills before new information moves the price.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Two-sided quotes do not guarantee offsetting fills. Check automation permissions, inventory caps, fees and whether the prop program supports this activity.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.