Great question. It’s something we do on PredictIt.Org, a trading platform that I like to call “free money.”
First of all, this is totally legal, so don’t even come at me.
Second, WTF is it? How does it work? Here’s your jungle guide:
Say you buy a share above. You go with, “Will Kamala Harris be the Democratic Nominee in 2020?” You buy 100 “yes” shares at 14 cents. Because why not, the Democrats have done stupider things. Have you seen Michael Dukakis in that tank helmet? Did you hear Cory Booker’s speech at the 2016 DNC?
Fast forward to 2020: If Kamala wins the nomination, your 14 cent shares will be redeemed at $1 each — the highest valuation on PredictIt. So now you’ve got $100 bucks in your pocket, which is a whole lot better than the $14 you spent to “invest”. But if you lose — if Joe Biden or Elizabeth Warren is the nom, for example — those shares will be worth $0.
But guess what? We’ve got some freewill in this game. You can sell those shares anytime you want, and if you pay attention, you’ll see times that the market goes up and down like a stock exchange. We’ve made money on good horses and bad, and if you pay attention to this blog, we’ll hit you with some tips on how to do that on yourself.
This is free money.
***New to PredictIt? Click here to get your first $20 matched by the house.***