How the Users Win or Loss in Opinion Trading?
→ Opinion trading platforms allow users to engage with real-world events by predicting outcomes and trading opinions, functioning like a speculative marketplace. Users buy and sell shares in potential outcomes, with prices fluctuating based on supply and demand. If more users believe an event will occur, the price of "YES" increases while "NO" decreases, and vice versa. The platform uses automated market makers (AMMs) or order books to determine prices. Users can trade at any price and even sell positions before settlement to maximize profits. Once the event concludes, the platform verifies the outcome through trusted sources or oracles and settles the market accordingly.
→ Users profit when their predictions are correct. For example, purchasing 100 shares of "YES" at ₹40 per share results in a ₹4,000 investment. If the prediction is accurate, the share value rises to ₹100 per share, yielding ₹10,000 and a ₹6,000 profit. However, if incorrect, the value drops to zero, leading to a loss. Traders can also profit by selling shares early when market sentiment shifts. Platforms generate revenue through transaction fees, liquidity spreads, and brand partnerships. Small commissions on trades and withdrawals provide a stable income, while price adjustments ensure liquidity. Additionally, advertisements and sponsorships contribute to revenue. By integrating gamification elements such as leaderboards and rewards, these platforms enhance user engagement. With a robust algorithm ensuring fair trading, opinion trading platforms offer an exciting, profitable experience for both users and operators.
