Straight answers on definitions, trading mechanics, UK access, settlement, liquidity, taxes and provider-specific searches.
THE GUIDE ↳ REFERENCE DESK
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These answers are brief by design. Each links into the detailed guide when the distinction matters. The questions follow the themes in the project brief; the supplied research CSV files were not available in the workspace, so we have not attributed exact phrasing or counts to them.
They are markets built around defined future outcomes. People take positions on an answer, and prices change as orders meet. The outcome is settled under written rules.
02How do prediction markets work?+
A question is listed with settlement rules, participants place orders, prices move as orders match, and the operator resolves the event using the stated source.
03Is a prediction market price a probability?+
It can be read as an approximate implied probability in a simple fixed-payout contract. Fees, spreads, liquidity and biased participation limit that interpretation.
04Are prediction markets legal in the UK?+
There is no blanket answer. The exact business model and operator matter. The Gambling Commission has published its view on GB-facing products that resemble betting intermediaries.
05Can UK residents use Polymarket?+
Polymarket’s geographic-restrictions help page lists the United Kingdom as restricted. Check its latest terms; do not bypass a restriction.
06Is Coinbase prediction markets available in the UK?+
Coinbase’s help page says its prediction-markets buying and selling is available to US residents only. A Coinbase account in the UK does not establish access to this product.
07Is Robinhood’s prediction hub available in the UK?+
The official hub is presented as a US product. We have not confirmed UK access to that specific product; check Robinhood’s current eligibility terms.
08Are prediction markets betting or trading?+
Both terms appear in marketing, but a label does not decide the legal category. Examine the actual contract, operator and applicable regulator.
09What happens when a market resolves?+
The operator uses the market’s published evidence and settlement rules to decide which outcome pays. Exceptional-event and dispute policies vary.
10What does liquidity mean?+
It describes how easily an order can be matched or a position closed without moving the price. A displayed quote may be available only for a small amount.
11Do you pay UK tax on prediction market profits?+
Do not assume one treatment applies to all products. Ordinary gambling winnings for customers are generally not taxed, but financial or crypto transactions may be different; ask a qualified UK adviser.
12Can I use a prediction app without depositing money?+
Many operators let visitors view public information, but viewing rules differ. Reading public quotes is distinct from opening an account or taking a position.