UK guide
What Are Prediction Markets?
A plain-English introduction to event contracts, market prices and the main types of prediction platform.
Published 1 September 2026Reviewed 18 September 2026
Prediction markets explained
A prediction market is a market for contracts tied to future events. Participants buy and sell outcomes, and the resulting price is commonly interpreted as a probability.
Because participants act on different information and incentives, the market combines many views into one changing number.
The main platform types
UK users encounter betting exchanges, crypto prediction markets, overseas event-contract venues and free forecasting communities.
- Betting exchanges match back and lay orders
- Crypto markets settle with digital assets
- Event-contract exchanges use financial-market structures
- Forecasting communities score accuracy without real-money stakes
What a market can and cannot tell you
A price is a snapshot of collective belief, not certainty. Thin liquidity, unclear settlement rules and restricted access can all reduce its usefulness.