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Worked example · 5 minutes

Walk through a first trade before placing one.

This lesson uses imaginary numbers to show how an order turns into a position. It is an educational example, not a recommendation, and it ignores fees unless noted.

Step 1

Read the market before looking at the price

Hypothetical question

Will the city transit project open by September 30?

Outcomes
YES or NO
Trading closes
September 30, 11:59 PM
Resolution source
Official transit agency notice
What counts as ‘open’ under the market rules?
Which time zone applies to the deadline?
What happens if the project opens only partially?
What are the void, delay, or dispute conditions?
Step 2

Turn your view into an order

Imagine the headline probability is 40%, the best YES bid is 39¢, and the best YES ask is 42¢. Buying immediately is likely to cost the ask—not the 40¢ headline price. You choose a limit price of 42¢ for 10 YES shares.

Outcome
YES
Limit price
42¢
Shares
10
Estimated cost
$4.20
Maximum gross payout
$10.00
Maximum loss
$4.20

Do the order math

Estimated cost

10 shares × $0.42 = $4.20

Gross payout if YES wins

10 shares × $1.00 = $10.00

Gross upside at resolution

$10.00 − $4.20 = $5.80

Actual totals can include trading fees and network fees. Use the order preview as the source of truth before signing.

Step 3

Compare the possible outcomes

A position does not need to be held until resolution. You can try to sell earlier, but the price and available liquidity may have changed.

The market resolves YES
$10.00 gross payout
$5.80 gross gain over the $4.20 cost.
The market resolves NO
$0 payout
The $4.20 cost is lost.
You sell all 10 shares at 60¢
$6.00 gross proceeds
$1.80 gross gain if the sell order fills.
You sell all 10 shares at 30¢
$3.00 gross proceeds
$1.20 gross loss if the sell order fills.

The figures above are before fees. Early exits assume all 10 shares fill at the stated price; a real order can fill partially or not at all.

Step 4

Know what happened after you submit

Filled

Your order matched. The filled shares now appear in your position.

Open

No one has matched your limit price yet. Funds may remain reserved.

Partially filled

Only some shares matched. The remainder can stay open or be canceled.

Canceled

The unfilled portion is removed and its reserved balance is released.

Ready for the checklist?

Before using real capital, confirm the market rules, executable price, order size, maximum loss, fees, and wallet prompt. Starting small limits the cost of a mistake while you learn the interface.