YES/NO share mechanics
An exchange help account explained how binary YES/NO prediction shares trade between $0.01 and $0.99 and resolve to $1 if the event happens, clarifying the payoff bounds for simple markets. (x.com)
A binary prediction market is a yes-or-no question sold in shares, and each winning share settles at $1 while the losing side settles at $0. (docs.polymarket.com, docs.polymarket.com) On Polymarket, each market is a single binary question with YES and NO outcomes, and users trade those positions against other users on an order book rather than against a house. (docs.polymarket.com, docs.polymarket.com, docs.polymarket.com) The basic payoff is fixed: buy one YES share at $0.60 and, if the event happens, that share can be redeemed for $1 after resolution; if it does not happen, that YES share is worth $0. (docs.polymarket.com, docs.polymarket.com, docs.polymarket.com) That is why traders often read the share price as an implied probability. A YES share at $0.60 suggests the market is pricing roughly a 60% chance of that outcome, while the opposite NO side sits near $0.40 before fees and spread. (docs.polymarket.com, docs.polymarket.com, binance.com) The trading range is usually shown between $0.01 and $0.99 because the contract can only end at $0 or $1, and venues generally do not quote fresh trades exactly at the endpoints before formal resolution. (binance.com, sportsbookreview.com, docs.polymarket.com) A complete set is one YES and one NO share for the same question, and Polymarket’s token system lets $1 of collateral be split into one of each. That structure is what keeps the two sides economically linked to a combined value of about $1. (docs.polymarket.com) Users do not have to hold until the event ends. Polymarket’s documentation says traders can sell positions at any time before resolution, so gains and losses can be realized early if prices move. (docs.polymarket.com) When the event is over, Polymarket says the market resolves through the UMA Optimistic Oracle, which allows an outcome to be proposed and disputed before redemption opens. (docs.polymarket.com) After that process finishes, winning tokens can be redeemed for exactly $1.00 each in USDC.e, and losing tokens produce no payout. (docs.polymarket.com, docs.polymarket.com) The mechanics are simple on purpose: a YES share can never pay more than $1, a NO share can never pay more than $1, and before resolution the market price is the number traders argue over. (docs.polymarket.com, docs.polymarket.com, binance.com)
