alt Hacker NewsEquities are underlying collateral. Prediction markets are literally just betting on an outcome, no underlying asset exists.
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delichon • today at 2:38 PM
Collateral is not uncommon in gambling (e.g. pink slips). That does not seem to distinguish gambling from speculating.
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petcat • today at 2:57 PM
What collateral is underlying the massive, state-sponsored, Spanish lottery ticket and scratch off racket?
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Prediction Markets act the same way as Gambling Exchange - the assets are denominated as both sides of the book minus the spread.
https://www.betfair.com/exchange/plus/