Prediction markets on Public let you trade event contracts, which allow you to take a position on the outcome of a specific future event. For example, you could trade on where the Fed will set interest rates at its next meeting or how many vehicles an automaker will deliver next quarter.
Event contracts are a type of financial contract known as a cleared swap. Each contract has only two possible outcomes: "Yes," the event will occur, or "No," it will not. If you think the event will occur, buy a "Yes" contract. If you think it won't, buy a "No" contract.
Event contracts trade between $0.01 and $0.99, and the price can be viewed as the market's implied probability of that outcome. If your prediction is correct, each contract pays $1. If your prediction is incorrect, the contract pays nothing, and you lose the amount you paid, plus any fees. You don't have to hold a contract until the event resolves. You can place an order to sell your position before then, although whether and at what price your order executes depends on that market's liquidity.
If you have questions, contact Member Support via in-app chat or email at support@public.com.
Trading event contracts involves significant risk and is not suitable for all investors. Before trading, read our Event Contracts Risk Disclosure. Event contract accounts are not SIPC protected. Full disclosures here.