Yes No Contract
A yes no contract is a prediction market contract that resolves to a binary outcome, typically paying 1 if YES happens and 0 if NO happens.
Definition
A yes no contract is a common prediction market format with two outcomes: YES and NO.
Typical payout
• A YES contract typically pays 1 if the event happens and 0 if it does not.
• A NO contract is the mirror exposure (depending on platform design).
How price is interpreted
In many markets, the price of YES is treated as implied probability. For example, 60c is often read as roughly 60%.
Why it matters for costs
Because the total range is only 0 to 1 (or 0 to 100 cents), even a few cents of spread or a small effective spread can be a large fraction of expected edge.
Common pitfalls
Assuming price equals truth: Price is an estimate shaped by liquidity and costs, not a guarantee.
Not checking settlement: Always read market rules and how the event is defined.