Resolution is the process of determining and finalizing a market's outcome, after which winning shares pay $1.00 and losing shares pay $0.
Understanding resolution helps you read prices and manage risk on any prediction market platform.
Example
After the election is called, the market resolves YES and every YES share pays out $1.00.
Why it matters
Knowing how resolution works lets you compare markets and avoid costly mistakes when trading.
Practical tip
Before trading, check how resolution 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 resolution in action before risking real funds.