Predicorp Insighter Exchanges© is a trading place focused on specific issues. Each of them is about predicting the outcome of just that single question.
Markets are created according to the type of handled questions:
Binary market gives two alternative outcomes
Discrete or open Multi-outcome market handles several tradable options
Long or short term markets
Ad-hoc markets
The time length of an exchange is depending on its type of issue, but it shouldn't exceed three weeks.
Predicorp Insighter Exchanges© provides a complete solution for creating, analyzing and operating a prediction market. Every exchange is divided into four interrelated layers of functionality:
Trading community
Access method
Trading environment
Sponsors
The trading community provides the raw input. Through frequent orders, using various access methods, insighters buy and sell contracts in outcomes of future events. They place their orders on the Insight Exchange, where a trading engine instantly matches buyers and sellers.
Supply and demand determines the price of contracts during each markets lifespan. All markets are designed to keep prices within a limited range, between zero and one hundred. The current price of each outcome becomes a prediction of the probability of this outcome actually occurring.
Traders are rewarded for their skill in maximizing their net worth. Total net worth is calculated as the sum of cash on hand, plus the value of the trader's holdings at market close.
The basic rule is to buy low and sell high. Frequent trades provide many opportunities for profit, and can significantly increase intermediate net worth. Still, at the end of the day, only contracts in winning outcomes pay out in full. At market close, winning contracts are valued at P$ 100, while all other contracts become worthless. Thus, successful trading requires knowledge and intuition, as well as practical trading skills.
The Insight Trading Engine runs all markets on the exchange. This is a real-time market matching system, simultaneously operating multiple exchanges. Traders must register with the system, and have access only to markets where they are given trading privileges. Different communities trade on different exchanges, securely separated and managed. Insight traders can interact not only through their transactions, but also in the various fora. Each exchange has at least one associated Insight Forum which is linked to the access privileges of each trader.
The trading engine continuously provides intermediate trading results and predictions. Current price, volume, buy and sell orders are all displayed in real time. Traders can view historical data for their markets, follow trends and track trading patterns.
The Insight Analyzer handles in-depth analysis. This application adds advanced research tools for determining trader profiles and trading patterns. Traders can be segmented by demographics, sorted into communities and analyzed in terms of depth and breadth. Trading patterns can be analyzed over time, within and between markets.
Thanks to the use of online economies of scale, the Insight Exchange© also significantly reduces the cost of market data acquisition. |
