How Markets Work
Pariflow markets let users take positions on clearly labeled outcomes. A market starts with a question, lists one or more tradeable outcomes, updates prices as information changes, and eventually resolves to a final settlement value.
This page explains the core mechanics before you place a trade.
Before trading Read the market title, selected outcome, market state, quoted price, estimated average price, and settlement rules. A price is useful context, but it is not a guarantee that the outcome will happen or that every order size can execute at that price.
The basic model
| Concept | Meaning |
|---|---|
| Market | The event or question being traded, such as a match winner, election result, price level, or news outcome. |
| Outcome | The specific side you select. In sports and esports, this can be a team, player, handicap, total, map winner, or series winner. |
| Price | A probability-style quote shown in cents. A 68c price means the market is roughly pricing that outcome near 68%. |
| Shares | The position size created by your entry amount and average entry price. More expensive outcomes buy fewer shares per dollar. |
| Current value | Shares multiplied by the current price of the selected outcome. |
| Net P&L | Current value minus entry cost, including the spread or other displayed trading cost where applicable. |
| Settlement value | The final value applied after resolution. A winning outcome usually settles at 100c; a losing outcome usually settles at 0c. |
Binary markets
Binary markets usually have two opposite outcomes, such as YES and NO.
If the market question resolves to YES:
- YES positions settle at 100c.
- NO positions settle at 0c.
If the market question resolves to NO:
- NO positions settle at 100c.
- YES positions settle at 0c.
The label matters. A YES position means you are taking the side that the market statement will be true. A NO position means you are taking the side that the market statement will not be true.
Multi-outcome markets
Some markets have more than two possible outcomes. Examples include tournament winners, political nominees, award winners, or markets with several named candidates.
Multi-outcome markets require extra attention because:
- The selected outcome is not always the same as the event title.
- Multiple cards may represent related markets for the same event.
- Only the market rules define whether one outcome, multiple outcomes, or no outcome can settle as winning.
- Prices across outcomes can reflect spread, liquidity, and market uncertainty, so they may not add up cleanly to 100%.
Sports and esports markets
Sports and esports pages can group several markets under one event. A single match can include:
- Match winner.
- Game or map winner.
- Handicap markets.
- Totals markets.
- Series score or special formats.
Pariflow should display these as related markets under the same event when they refer to the same match. The outcome label should make clear whether the user is selecting a team, a game-level result, a handicap side, or another specific contract.
Price examples
Prices are displayed in cents. A 60c outcome costs about $0.60 per share before spread and liquidity effects.
| Example | Calculation |
|---|---|
| Entry amount | $600 |
| Average entry price | 60c, or $0.60 per share |
| Shares | 0.60 = 1,000 shares |
| If the outcome wins | 1,000 shares x 1,000 final value |
| If the outcome loses | 1,000 shares x 0 final value |
| Simplified winning P&L | 600 entry = +$400 |
| Simplified losing P&L | 600 entry = -$600 |
Actual order previews can differ from this simplified example because spread, available liquidity, order size, and timing can change the average entry price.
Price types
Pariflow uses several price concepts in different parts of the product.
| Price type | Where it appears | What it means |
|---|---|---|
| Displayed price | Cards, lists, and compact event rows | Fast market context for scanning. It may not be executable for every size. |
| Executable quote | Trading panel before submission | The current quote used to preview an order. It can expire or change. |
| Average price | Order preview and position details | The blended price after size, spread, and available liquidity are considered. |
| Current price | Portfolio and market details | The latest known price used to estimate current value and open P&L. |
| Settlement price | Closed positions and history | The final value used after the market resolves. |
P&L and balance
Open positions show estimated P&L while prices move. Closed positions show final P&L after settlement.
For a long position:
- Current value = shares x current price.
- Market P&L = current value - entry value before user-facing trading costs.
- Net P&L = current value - entry value including displayed spread or trading cost.
- Final payout = shares x final settlement value.
Available balance and P&L are not the same thing. When you enter a position, the committed amount is removed from available balance. When the market settles, a winning position credits the final payout back to balance; a losing position credits zero.
Market lifecycle
| State | What it means for users |
|---|---|
| Upcoming | The event is visible before it starts or before trading opens. |
| Open | Orders can be previewed and submitted if the selected outcome remains tradeable. |
| Live | The event is in progress. Prices can move quickly and trading can pause if the market state changes. |
| Closed | New orders are blocked. Positions may still wait for final settlement. |
| Pending settlement | The outcome is being finalized or settlement accounting is still processing. |
| Settled | Final P&L has been applied and the position should appear in history. |
What to check before submitting
- The exact market title.
- The selected outcome label.
- Whether the market is open, live, suspended, closed, or pending settlement.
- The order amount and available balance.
- The estimated average price and estimated payout.
- Whether the displayed price and the executable quote are still fresh.