The Kelly criterion is a formula for sizing bets based on your edge and the odds, aiming to grow a bankroll while limiting ruin risk.
Understanding kelly criterion helps you read prices and manage risk on any prediction market platform.
Example
With a small edge on a 40¢ YES share, Kelly math might suggest risking only a few percent of your bankroll on that position.
Why it matters
Knowing how kelly criterion works lets you compare markets and avoid costly mistakes when trading.
Practical tip
Before trading, check how kelly criterion shows up on the specific platform you use, since interfaces and terminology can vary slightly between exchanges. Reviewing a few live markets is a quick way to see kelly criterion in action before risking real funds.