Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


Term of the day

prediction market

Prediction markets essentially allow participants to stake bets on the likelihood of various events taking place. These events include things such as elections. They also include predictions on the outcome of a sporting event,  in which case the use of a prediction market is like a form of spread betting. Prediction markets also offer trade in possible future outcomes on securities markets, in which case participants who use it are buying something like a futures contract. In the US, where...