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Strategies & Market Trends : Predictive Markets

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To: Ron who wrote (103)2/23/2008 2:55:37 PM
From: ~digs   of 137
 
Yes, absolutely. Just like the stock market there is somebody on the other side of each trade. Every buy is a sell and every sell is a buy. And so it would cost you $6.50 cents to sell short one 'McCain for Prez' contract, w/ a profit potential of $3.50. Conversely, the person buying your short would pay $3.50 for a profit potential of $6.50. It's a zero-sum game minus a nominal fee (paid only by the winner) taken by the exchange at expiry. And yes, you can trade in and out up to and until the event concludes.
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