Who are you trading with?

On PredictHub, every trade connects two participants with differing views on event outcomes. You're always trading against another member of the platform, never the exchange itself.

Here's how it works: One participant, the "maker," sets an offer by choosing a side (Yes or No), naming their price, and specifying the number of contracts they want. The "taker" then matches with the best available offer.

PredictHub hosts three main types of traders:

• Directional Traders: Those who believe a contract’s pricing offers value relative to the event's likelihood.

• Hedgers: Individuals or institutions seeking to protect against external risks (like inflation or weather) by securing downside protection.

• Market Makers: These participants provide liquidity, ensuring smooth market operations by buying and selling contracts, often making money from the spread between bid and ask prices.

Most of PredictHub’s participants are retail traders, fitting into the first two categories. Market makers also play a crucial role in maintaining market liquidity.