Resolution
Resolution is the determination of which outcome occurred under the market rules. Resolution precedes settlement and triggers payout calculations.
Definition
Resolution is the determination of the winning outcome under the market rules. Resolution is the decision step that precedes settlement.
How it relates to trading
Resolution is why rule wording and settlement sources matter. Two markets can look similar but resolve differently if their rule definitions differ.
Why it matters for costs
Markets can experience changing liquidity and spreads as resolution approaches. Traders who ignore this can face higher costs and worse exits.
Common pitfalls
Assuming a market resolves “the obvious way”: Always check the rule details and settlement source.
Confusing platform terminology: Some platforms say “resolve”, others say “settle”, but resolution is the outcome decision and settlement is the payout process.