Glossary

Quick reference guide to all the terms you'll encounter on Polymarket. Bookmark this page!

Prediction Market

A market where you can buy and sell shares representing future events. Prices reflect the probability of outcomes.

USDC (USD Coin)

A stablecoin cryptocurrency always worth $1 USD. It's like digital dollars on the blockchain - fast, secure, and global.

Shares

Digital tokens representing a position on an outcome (YES or NO). Each winning share pays out exactly $1.00.

YES / NO

The two possible outcomes in most markets. Buy YES if you think the event will happen, NO if you think it won't.

Market Price

The current price of a share, represented as cents ($0.00-$1.00). A 65¢ YES price means the market thinks there's a 65% chance.

Liquidity

The total value of shares available to trade. Higher liquidity means easier buying/selling at stable prices.

Market Resolution

When the event outcome is determined and winning shares are paid out at $1.00 each. Losing shares become worthless.

Order Book

A list of all buy and sell orders. It shows what prices people are willing to trade at - like a stock exchange.

Market Orders

Buy/sell immediately at the current best available price. Fast execution, but you may get a slightly worse price.

Limit Orders

Set your own price and wait for someone to match it. Slower, but you control the exact price you pay.

Collateralized

Every pair of YES + NO shares is backed by $1 USDC in a smart contract. This guarantees payouts.

Wallet

A digital account that holds your USDC and shares. You control it with a password or email - Polymarket never touches your funds.

Gas Fees

Small transaction fees paid to process trades on the blockchain. Usually just pennies on Polygon network.

Polygon Network

The blockchain where Polymarket operates. It's fast and cheap compared to Ethereum mainnet.

Volume

Total dollar amount traded in a market. Higher volume usually means more active trading and better prices.

Slippage

The difference between expected and actual price when executing large orders. More liquidity = less slippage.

Spread (Bid-Ask)

The gap between the highest buy price (bid) and lowest sell price (ask). Example: 64¢ bid / 66¢ ask = 2¢ spread.

EVM Wallet

Ethereum Virtual Machine wallet (like MetaMask) that works on all Ethereum-compatible chains including Polygon where Polymarket runs.

API (Application Programming Interface)

Developer tools to access Polymarket data and trade programmatically. Build bots, analytics, or custom apps.

Sports Markets

Prediction markets on NFL, NBA, MLB, soccer outcomes. Bet on games, player props, and championship winners.

Parlay

A combined bet where you predict multiple outcomes. All predictions must be correct to win, but payouts are higher.

Cross-Chain Bridge

A tool that transfers crypto assets between different blockchains (e.g., Ethereum to Polygon).

Still Have Questions?

Check out the official Polymarket documentation for more detailed explanations and advanced topics.

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