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Implied Probability

What a prediction-market price says about an event's odds (0–100%)

Category: Concepts Also known as: 4 Related terms: 1

Definition

The probability a market assigns to an outcome, read straight from the contract price: a 'Yes' share at $0.62 ≈ 62% implied odds. It moves as traders buy and sell. Descriptive of crowd sentiment — not a forecast or guarantee.

Context anchor

Price $0.00–1.00 maps to 0–100%. A 5-point move = a 5% shift in crowd odds

Example

A 'Yes' share trading at $0.62 carries a 62% implied probability

Also known as

implied oddsimplied probimplizite wahrscheinlichkeitprobabilidad implícita

Related terms