What Is Liquidity on FanDuel Prediction Markets?
Liquidity is how much interest sits on both sides of a Contract, and it shapes whether you can enter or exit a Position at the prices you intend.
FanDuel Prediction Markets lists contract that are available on CFTC-regulated derivatives exchanges, like CME Group and CDNA. Reading a market's liquidity comes down to three things you can see on screen: the bid, the ask, and the volume.
Read the Bid and the Ask
A bid is an offer to buy a Contract at a stated price. The ask is the price level of an offer to sell one. The CFTC Futures Glossary defines both terms if you want the formal versions.
In most cases, order books show real-time customer bid and ask prices, so you can see where buyers and sellers stand before you place an Order. We'll use cents for the examples in this guide.
Check the Spread
The bid-ask spread is the difference between the bid price and the ask price. Two made-up examples, not real markets:
- A tight book: 47 cents bid, 48 cents ask. The gap is 1 cent.
- A thin book: 38 cents bid, 52 cents ask. The gap is 14 cents.
A wider spread means the displayed buy and sell prices sit further apart.
Know What a Thin Market Means
Per the CFTC's guide to prediction markets, contracts that attract fewer participants tend to have comparatively lower liquidity. Event Contracts may have varying levels of liquidity, and limited liquidity carries real consequences for your Positions. It could:
- Make it difficult to enter or exit Positions at intended prices
- Lead to adverse price movements
- Make it difficult to close Positions
Our Risk Disclosures cover liquidity risk in full.
Look at Volume and Cash Out
Volume is the total amount of all trades placed in a market, and it can indicate user interest and activity. You'll see it next to each market while you browse.
Cash out is available only on select markets. When a market offers it, you'll find the option on the My Orders page.
Hold or Cash Out
If your prediction is correct at settlement, your Position collects the full payout. Risk of Loss: a Position can lose its full Premium. You never lose more than you put in.
Frequently Asked Questions
Are trading hours the same for every market?
No. Trading hours vary by market, and each market lists its hours in the Market Overview section.
Can I hold both Yes and No Positions in the same market?
Yes, you can purchase both sides of a market.
All derivatives contracts are offered and accounts are carried by FanDuel Prediction Markets LLC, a registered futures commission merchant. 18+. Trading is risky, always Trade Responsibly. Manage your activity with our Consumer Protection tools. If your activity is becoming a problem, support is available: call 1-800-522-4700. Futures, options on futures, and cleared swaps trading involves significant risk and is not appropriate for everyone. Please carefully consider if it’s appropriate for you in light of your personal financial circumstances. Read the Risk Disclosures for more information about the risks associated with trading.
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