Where the Shares for new markets are coming from originally when there was no one to sell yet?
S
SPGremlin
started a topic
over 2 years ago
When a new binary market (Yes/No) is started, where is the original supply of shares coming from to fulfill first BUY orders? What defines a total market supply of Yes and No shares on a market? The FAQ does not address that.
Is it correct that PredictIt just matches outstanding buy orders for Yes and No shares as soon as bid prices add up to $1.00? So basically a person A was bidding for 10 "Yes" shares at $0.7, and a person B was bidding for 10 "No" shares at $0.3 => orders are fulfilled and 10 matching Yes and No shares are generated out of thin air (as there was no one to sell them), is that correct?
SPGremlin
When a new binary market (Yes/No) is started, where is the original supply of shares coming from to fulfill first BUY orders? What defines a total market supply of Yes and No shares on a market? The FAQ does not address that.
Is it correct that PredictIt just matches outstanding buy orders for Yes and No shares as soon as bid prices add up to $1.00? So basically a person A was bidding for 10 "Yes" shares at $0.7, and a person B was bidding for 10 "No" shares at $0.3 => orders are fulfilled and 10 matching Yes and No shares are generated out of thin air (as there was no one to sell them), is that correct?
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