# 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.