Prediction markets · Rookie
Yes and No contracts
Also searched as: Yes shares, No shares, binary payoff
What does Yes and No contracts mean?
Yes and No contracts represent opposite sides of a binary event proposition. In a standard fully collateralized binary market, one side pays the stated settlement amount and the other pays zero after a decisive resolution.
Example
A trader buys Yes for 40 cents on a contract that pays $1 if the condition is satisfied.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Owning No is exposure to the proposition being false, not a short position in the underlying asset. Special settlement cases depend on market rules.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.