PredictIt deducts only the amount necessary to cover a trader’s potential losses (“risk”) in both single-contract and multiple-contract markets. In a single contract market, the calculation of risk is very simple: it equals the amount you paid for your shares because if your prediction is wrong, you will lose your investment in those shares. In markets with multiple contracts, the calculation of risk is more complicated, but the principle is the same. There is no reason for us to deduct more from a trader than he or she could possibly lose.
Modified on: Tue, 26 Jul, 2016 at 2:54 PM
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