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2026-06-23 05:43:37 -

Understanding Prediction Market Dynamics: How Prices Move, AMMs Work, and Order Books Function

Introduction Most people who participate in prediction markets focus on the outcome, will this candidate win, will this product launch succeed, will this match go into overtime? Very few stop to ask the more fundamental question: how does the market itself work? What is happening behind the scenes every time a price shifts by a cent, or a trade gets matched in milliseconds? The answer lies...

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