by CI Staff
Intrade is a fascinating website for those who like to speculate. Specifically, Intrade is a prediction market that allows individuals to bet on the outcome of hundreds of real-world events. To make a prediction, users buy and sell shares on the outcome of real-world events defined as a Yes/No proposition, such as, will Barack Obama be re-elected in 2012?
Buying shares indicates you believe the event will happen, while selling (i.e., short selling) indicates you believe the event will not happen. If the event happens, each share is valued at $10.00. If the event does not happen, shares are valued at $0.00. Shares are bought or sold at a price between $0.00 and $10.00, depending on the probability of the event happening as determined by the market. Moreover, there are no transaction fees or commission charges on Intrade. Rather, users are charged a $4.99 monthly fee, which allows them to make an unlimited number of predictions. If there is no money in your account, the fee is not charged.
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