Expiration
Expiration is the time when trading ends for a prediction market. After expiration, the market resolves and settles according to the rules.
Definition
Expiration is the time when a prediction market stops accepting trades. After expiration, the market proceeds to resolution and settlement under the market rules.
Why it matters
Expiration affects liquidity and execution costs. Markets often become thinner and spreads can widen close to expiration, raising effective spread and total costs for late entries or exits.
Common pitfalls
Waiting too long: If you need to exit, doing it near expiration can be expensive due to low liquidity.
Confusing expiration with settlement: Expiration is when trading ends; settlement is when payouts are applied.