From the way I understand Predictit, the site runners don't set the prices, market rate is determined by what people are willing to sell them for. I have 1300 shares for Trump winning, and I could log in right now and post a sell offer to sell them for $0.01 if I stupidly wanted to. So the price is simply what people are presently offering to buy/sell them for.
I remember reading a post on r/TD 4 years ago that a large number of investment banker types bet against Trump as a hedge for what their stock losses would be if Shillary won. IDK how accurate that claim is but it seems sensible.
From the way I understand Predictit, the site runners don't set the prices, market rate is determined by what people are willing to sell them for. I have 1300 shares for Trump winning, and I could log in right now and post a sell offer to sell them for $0.01 if I stupidly wanted to. So the price is simply what people are presently offering to buy/sell them for.
I remember reading a post on r/TD 4 years ago that a large number of investment banker types bet against Trump as a hedge for what their stock losses would be if Shillary won. IDK how accurate that claim is but it seems sensible.
So it's a betting exchange rather than a traditional bookmaker, like they just take a cut for facilitating bets but don't pay out themselves on bets?