Position

Definition

A position in a prediction market is your held exposure to an outcome. It is typically defined by the number of contracts or shares you hold and your average entry price.

Why it matters

Your position size interacts with liquidity. In thin markets, larger positions are harder to enter and exit without slippage and price impact.

Entry and exit costs

• Entering a position typically pays spread and may incur slippage.

• Exiting later can be cheaper or more expensive depending on liquidity and spread conditions.

• Total profitability depends on round trip cost, not just entry.

Common pitfalls

Sizing too large: Impact and slippage can erase edge as size increases.

Ignoring exit liquidity: The cost to exit is often underestimated, especially near resolution.