> ## Documentation Index > Fetch the complete documentation index at: https://docs.predexon.com/llms.txt > Use this file to discover all available pages before exploring further. # Prediction Markets 101 > Understand how prediction markets work and the key concepts behind the Predexon API **Concepts learning path · 1 of 3.** Start here for the mental model: how prediction markets work, what a market/outcome/token is, and how venues differ. Once this clicks, the rest of the docs read naturally. ## What Are Prediction Markets? Prediction markets are platforms where you trade contracts on the outcomes of real-world events. Each contract resolves to either **\$1** (if the outcome happens) or **\$0** (if it doesn't). The current trading price reflects the market's implied probability of that outcome. For example, if a contract "Will X happen?" trades at **\$0.65**, the market implies a **65% probability** that X will occur. ## Key Concepts ### Markets and Conditions A **market** is a single tradeable question (e.g., "Will Team A win?"). Markets are identified by a `condition_id`, the unique identifier for the underlying question. Each market has two sides: * **Yes** - you profit if the event happens * **No** - you profit if the event doesn't happen Yes and No prices always sum to approximately \$1. ### Token IDs Each side of a market has its own **token ID**, the specific tradeable asset. A single `condition_id` maps to two token IDs (one for Yes, one for No). When placing trades or fetching prices, you'll often work with token IDs. ### Events An **event** groups related markets together. For example, "2026 Election" might be an event containing markets for each candidate. ### Orderbooks Prediction markets use **orderbooks**, a list of open buy and sell orders at various prices. The orderbook determines the current best price and available liquidity. Key orderbook terms: * **Bid** - highest price a buyer is willing to pay * **Ask** - lowest price a seller is willing to accept * **Spread** - the gap between the best bid and best ask ### Positions When you buy shares in a market, you hold a **position**. Positions track: * Which outcome you hold (Yes or No) * How many shares * Your average entry price ### Resolution When the real-world event concludes, the market **resolves**. Winning shares pay out \$1 each. Losing shares pay \$0. After resolution, winning positions become **redeemable** and can be exchanged for your collateral (pUSD on Polymarket, USDT on Predict.fun). ## Platforms Predexon Supports Predexon provides a unified API across multiple prediction market platforms: | Platform | Blockchain | Collateral | Data | Trading | | --------------- | --------------- | ------------------ | --------------------------- | --------- | | **Polymarket** | Polygon | pUSD | Full coverage | Supported | | **Predict.fun** | BSC | USDT (BEP-20) | Markets, orderbooks | Supported | | **Opinion** | BSC | USDT (BEP-20) | Markets, orderbooks | Supported | | **Limitless** | Base | USDC | Markets, orderbooks | Supported | | **Hyperliquid** | HyperCore | USDH (USDC-pegged) | - | Supported | | **Kalshi** | - (centralized) | - | Markets, trades, orderbooks | - | | **Binance** | - | - | Crypto tick & candle data | - | ## What You Can Do with Predexon * **Read market data** - prices, candlesticks, volume, open interest, orderbooks across all platforms * **Trade programmatically** - place and manage orders on Polymarket, Predict.fun, Opinion, Limitless, and Hyperliquid via the Trading API * **Analyze wallets** - track positions, calculate P\&L, profile trading behavior * **Find cross-platform opportunities** - match equivalent markets between Polymarket and Kalshi * **Follow smart money** - see where high-performing traders are active * **Stream real-time data** - subscribe to trades, activity, and market lifecycle events via WebSocket *** ## Continue learning How wallets get classified as smart money — and how to use the signal. If you're ready to build, head to the right persona guide on the landing page.