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Price (Contract Price)

Contract price is the current trading price of a prediction market contract. In many markets, it is quoted from 0 to 1 or 0 to 100 cents.

Definition

Contract price is the price at which a prediction market contract trades. Many platforms quote prices on a 0 to 1 scale or as 0 to 100 cents.

Interpretation

It is common to interpret contract price as an implied probability, but that interpretation is not guaranteed to be exact in all market structures.

Why it matters for trading costs

Because the price range is bounded (0 to 1 or 0 to 100), trading costs matter a lot. A few cents of spread or a small effective spread can be a meaningful fraction of the entire payoff range.

Common pitfalls

Mixing scales: Be consistent about whether you are using 0 to 1 or 0 to 100 cents when measuring costs.

Using last price only: Contract price alone does not show the current tradable quotes. Always look at bid and ask when available.