Prediction Market Liquidity Open Interest and Volume
Separate trading activity, outstanding exposure and available book depth.
Begin with the executable market object.
Volume measures turnover, open interest measures outstanding exposure, and liquidity describes the ability to trade without moving price. They answer different questions.
Separate trading activity, outstanding exposure and available book depth.
Make the quote arithmetic explicit.
Notation and units
Decimal rates and volatilities, year-fraction time and continuous compounding unless stated otherwise.
Record venue, timestamp, and convention.
The venue, timestamp, executable side and data status are part of every market observation.
Midpoints and derived probabilities are analytical coordinates, not guaranteed executable levels.
Licensing, freshness and resolution rules determine how the observation may be used.
“An unstated convention is a future reconciliation break.”— THEQUANTBATEMAN
Distinguish observation from inference.
Screening active events, qualifying probability signals and comparing market quality.
Ask what can actually be traded or hedged.
Start from the executable side and timestamp. Derived Foundations signals are only as reliable as the market state and resolution convention beneath them.
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