> For the complete documentation index, see [llms.txt](https://legacy-docs.polymarket.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://legacy-docs.polymarket.com/faq/markets.md). # Markets ### **What is an information market?** An information market is where people buy and sell shares on how a future event will resolve. Prices change in response to trading activity. You can buy, trade, or sell shares in future outcomes. ### **Who sets the probabilities on a market?** The prices of shares in each market reflect the probabilities of the outcomes. Shares are valued between $0.00 and $1.00 and prices change depending on traders’ collective beliefs on the likelihood of the market resolving in either direction. For instance, if the price for a “Yes” share is $0.75, then the market believes the probability that the event will occur is 75%. ### What are the different types of markets? There are 3 types of markets that currently exist: * **Binary -** A market with two options that will resolve either $1 or $0. (ex: Will Tetranode have over 100k Twitter followers by 12/31/2025? YES/NO) * **Categorical -** A market with multiple options that will resolve either $1 or $0. (ex: What ice cream will have the most sales in 2025? Chocolate/Vanilla/Strawberry/Other) * **Scalar -** A market that resolves to where the final value sits between a lower and upper bound. * What will the population of Spain be in their upcoming census (47M-55M)? Long/Short) * If the population is 50M, the outcomes will resolve to: Long = $0.375 & Short = $0.625 ### I have a great idea for a market. Do you take suggestions? Our community is always open to ideas! Check out our [Discord](https://discord.gg/Polymarket) and explain your idea on the “formal-market-suggestions” channel. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://legacy-docs.polymarket.com/faq/markets.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.