How easily you can buy or sell contracts without significantly moving the price. More liquidity means tighter spreads and less slippage.
Liquidity measures how easily contracts can be traded at stable prices. High liquidity means tight bid-ask spreads, deep order books, and minimal slippage on large orders.
Polymarket leads in liquidity on political markets. Kalshi has the broadest market coverage. Robinhood and DraftKings have massive user bases that are building liquidity across their contracts.
Liquidity varies dramatically between popular and niche markets. A presidential election contract might have millions in volume while a weather contract has thousands. Always check depth before sizing a position.
A list of all pending buy and sell orders at different prices. Platforms with order books offer better price transparency.
SlippageThe difference between the expected price and the actual execution price, usually caused by thin liquidity or large order sizes.
Prediction MarketAn exchange where participants trade contracts based on the outcome of future events, with prices reflecting collective probability estimates.