Prediction markets have their own lingo that's an amalgamation of Gen Z and Gen Alpha slang

Prediction markets convinced regulators they're not gambling, but exchanging commodity futures contracts

Kalshi built a legal case that argues its yes/no bets on real-world events are futures contracts, and the relevant regulator—the Commodity Futures Trading Commission—agreed in 2020. Many states are now suing major prediction markets, arguing this legal case is faulty and obscures the true substance of the business: gambling.

Decoding sports-betting language

The world of sports gambling is filled with insider lingo: What's a "spread"? How about a "moneyline" or a "parlay"? This resource breaks down the jargon, helping you navigate the industry or, at least, giving you the keys to talk about it.

Prediction markets—the platforms where users can trade bets that pay out depending on certain event outcomes—have faced questions about insider trading.

Prediction markets help people bet on almost anything—which can be controversial

Critics point to incidents such as traders placing bets on the Venezuelan President Nicolás Maduro's capture and the two people in Israel who were charged on suspicion of using classified information to place bets about military actions.

The CEOs of the two top prediction markets have a fierce rivalry

Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan are both billionaire CEOs of the top two prediction markets—but they don't exactly get along. For instance, Mansour reportedly does not say the word "Polymarket" out loud, referring to it as the "non-American, unregulated platform."

Prediction markets and sports betting are not forms of investing, despite how some fans portray them.

Some experts equate prediction markets to the new crack cocaine of gambling addiction

An addiction psychiatrist at UCLA says betting apps are far more potent than traditional gambling, citing a 19-year-old patient who lost $180,000 and hadn't left campus in a year, cycling through sports bets, crypto, meme stocks, and prediction markets on his phone. This interview explores the extreme edge of the nascent industry.

How prediction markets differ from sportsbooks matters for regulation

There are a number of differences and similarities between sportsbooks and prediction markets, despite both allowing people to bet on outcomes for sports-related events. For instance, prediction markets typically earn revenue through transaction fees rather than taking directional exposure to outcomes.

What it means to call a bracket 'chalk'

If the tournament is rather boring, you might hear a curious word getting thrown around: "chalk." In short, it means that the favorites have been winning. The word's origins go back to horse racing and its sportsbooks, where bookies would post odds on chalkboards. Over time, the bookies came to be known as "chalk" and, years later, tournaments (and their brackets) that seemed to favor those bookies earned the name, too.

How math whizzes exploit sportsbooks

Chris Dirkus is a professional sports bettor who approaches the hobby as a math problem, not from a fan's perspective. He focuses on mispriced odds in popular games where many fans are betting for high liquidity. He's one of a rare segment of sports bettors exploiting slow models and human mistakes.

The prices on prediction markets reflect how the collective forecasts future outcomes.

Commodity traders are most commonly 'hedgers' or 'speculators'

While hedgers often produce and consume physical commodities (like corn, copper, or natural gas) and use the markets to manage the price risk for those commodities, speculators provide liquidity by betting on commodity price changes.

A margin call is a way for traders to pay off debts by selling a security before they may be ready to do so.

Contract prices on prediction markets are generally interpreted as implied probabilities

For example, if a contract trading is at $0.65, that could be read as the market assigning a 65% probability to that event occurring. The most common format for prediction markets is winner-take-all: The contract settles at $1 if the event occurs, or $0 if it doesn't.

Prediction market Kalshi's CEO Tarek Mansour ​​has said that prediction markets are similar to the stock market—except instead of buying and selling shares of companies, users buy and sell "yes" or "no" on whether an event is going to happen or not.

How did the bull and bear markets get their names?

The terms "bull" and "bear" are used to describe certain sentiments or activities in the financial markets. A bear market refers to declining stock prices and pessimistic outlooks, whereas a bull market represents the opposite.

Some Gen Z men are obsessed with ‘American Psycho’

If you’ve ever spent any time on finance-themed meme pages, you’re likely already aware that today’s young men have a fascination with the serial killer main character of the movie "American Psycho." Find out what it is about the satirical representation of the late-1980s Wall Street investment banker-type that resonates with Gen Z men.

40 key stock market terms, explained

Liquidity. Forex. Capitalization. Blue chip stocks. These are just a few pieces of stock market vocabulary most people who don't spend all day on a trading floor might not know. Thankfully, we found a fun infographic that makes it easier to learn what 40 key stock market terms mean and why each of them matters.

A landmark hedge fund court case once reshaped high finance

Hedge fund traders tied to insider trading by probing prosecutors are relatively rare. When billionaire hedge fund legend Steve Cohen, founder of SAC Capital, pleaded guilty to trading on inside information, Wall Street trembled. The outcome of the case remains a cautionary tale for traders today.

Kalshi is the first regulated prediction market in the US

Two migrant MIT students, Luana Lara Lopes and Tarek Mansour, shared an interest in hedging against uncertainty—from election outcomes to the Oscar awards. They fought hard for regulatory approval and their company now has a valuation in the billions. The platform has brought prediction markets into the mainstream.

Use a prediction market profit or loss calculator

In order to calculate how much someone would make from a specific trade on a prediction market, this calculator asks for the purchase price of a given "yes" or "no" prediction, the number of contracts the trader plans to purchase, and more.

Insider trading is the practice of trading a company's securities based on material, nonpublic information.

American Express is targeting Gen Z, who are generally less risk-averse than older generations

Unlike Millennials, who grew up during the Great Recession in 2008, Gen Z has a higher risk appetite and has grown up with more gamified spending platforms, like online gambling and prediction markets. Analysts say Gen Z's risk appetite makes them prime targets for credit card companies like American Express that can sell younger customers on large benefits in exchange for annual fees.

Retail investors are not professionals—they invest their own money

For retail investors, the stakes may seem higher and more personal. Critics say that this dynamic means that retail investors are more susceptible to behavioral biases that could lead them to make poor decisions when it comes to buying and selling assets. For instance, fear of missing out could cause a retail investor to buy a stock that is popular but not a financially worthy investment.

Meme stocks often have little underlying value but are fueled by crowd funding

"Meme stocks" is a phrase originating in the early 2020s, referring to companies with little underlying value who gain recognition through social media and whose stock price experiences rapid gains.

Defining 2025's internet slang

The internet is a slang factory, and new terms regularly crop up. This list breaks down some of the newest terms to hit social media, including "aura farming" (the cultivation of charisma to attract others) and "clock it" (an encouragement to remember something important).

The Reddit forum r/WallStreetBets is a place to discuss high-risk trading strategies

r/WallStreetBets is a forum (aka a “subreddit”) on the social media platform Reddit that was started in 2012. Later, r/WallStreetBets evolved into a place where unconventional investment approaches were not just tolerated, but planned and celebrated. It’s perhaps most famous for its role in the GameStop saga.

How to put on a hedge

These days, hedging your portfolio isn’t just for hedge fund managers. An explainer from Robinhood delves into what a hedged position actually is, why traders put on hedges, and how you, too, can work to guard your holdings against a market downturn. The idea is to derive gains from your portfolio when markets are trending up, down, or sideways.

Modern prediction markets—the platforms where people can trade bets that pay out depending on certain event outcomes—started in Iowa in 1988.

The idea that the median estimate of a group can be more accurate than individual expert estimates is called the 'wisdom of the crowd,' and dates back to the early 1900s.

While day trading has risen in popularity in recent years, the SEC warns it is a speculative strategy that can cause big losses

A day trader is anyone who buys and sells a stock within the same trading day. They quickly move in and out of the market to try and profit. Some day traders are professionals, while others are retail investors.

Retail investors are getting burned by long/short strategies

In the US, many retail investors lack the SEC-mandated status (a high enough net worth, income, and other factors) to directly invest in hedge funds. The regulator considers hedge funds too risky for the masses. Hedge fund-like strategies have emerged as a workaround, despite potential pitfalls.

Prediction market Polymarket's CEO dropped out of New York University

Polymarket CEO Shayne Coplan started building Polymarket when he was 21. Polymarket has been backed by billionaire investors such as Peter Thiel and Vitalik Buterin.

A list of MBA jargon, complete with a ‘corporate BS generator’

From the classroom to the boardroom, MBA students hear plenty of corporate jargon in their lifetimes (think: “bandwidth,” “turnkey solution,” “modularize,” and more). This website—a relic from the internet—includes an MBA jargon dictionary and a corporate BS generator tool that creates helpful phrases for office life, like “incubate synergistic e-markets.”

Breaking down the jargon and strategy of horse betting

Placing bets on horse racing isn't the same as a football or basketball game. You can pick a winner (win), who will come in second (place), and even third (show). And all the bets placed on a race are pooled together and divided among the winners. This Top Ten Picks video teaches the mechanics behind each bet, and shares insider tips that can lead to more informed betting choices.

Active investors try to 'beat' the stock market's performance

There are two primary types of investment strategies that professional investors use: active investing and passive investing. While active investors try to "beat" the stock market's performance, passive investors have a bit more faith in the system.

Political sloganeering is often downstream of memes

In 2018, #JobsNotMobs morphed from an internet meme into a conservative slogan. A video clip of angry protesters mixed with news anchors discouraging the use of the word "mob" posted on October 11, birthed the phrase. By October 19, it was adapted into a Republican party slogan.

A 'position' in financial markets refers to the amount of a security or asset that an investor owns or sells short

A "long" position gains from an increase in a security's price, whereas a "short" position profits from a price drop. This article includes a detailed explanation of the term "position" as it relates to investing and financial markets.

In early 2021, GameStop's stock surge brought retail investing into the spotlight.

Play a game that reveals if investors with a crystal ball make better trades

The "crystal ball" game reveals how well you would do trading stocks and bonds if you could see the front page of the Wall Street Journal one day in advance.

Robinhood's pivot from everyday investors to hyperactive traders

The platform was conceived as a hub for first-time investors looking to get into trading. After criticism in 2021, the company pivoted to focus on more regular, daily traders, among whom the company's CEO has now become a cult hero.

The 2024 US presidential election was a breakthrough moment for prediction markets

Founded in 2018 by MIT graduates, Kalshi won a federal appeals court ruling in October 2024 that allowed it to offer election contracts in the US. When prediction markets predicted President Donald Trump's win (more accurately than most polls), prediction markets were thrust into the public eye.

Bear raiding is a manipulative tactic to bring a stock price down—and part of why short selling can be controversial

Bear raids occur when short sellers use manipulative tactics—like spreading false rumors or coordinating trades—to artificially drive down a stock's price and profit from short positions. Although bear raids are an illegal form of market manipulation, they can spook investors, prompting large selloffs of shares and causing a company's value to plummet. As a result, investors may be hesitant to invest in the company in the future, creating a feedback loop of stock downturn.

How exchanges like the Chicago Mercantile act as trading referees

Chicago's Mercantile Exchange emphasizes futures contracts on commodities. This podcast episode breaks down how exchanges actually work, make money, and streamline the market.

NFL Draft decisions are shaped by brain science, data, and office culture

Carnegie Mellon researchers say Draft-room choices are influenced by the "jackpot effect"—where higher stakes can impair performance—as well as by groupthink, the limits of data, and whether scouts feel safe speaking up.

Smart pricing algorithms can unintentionally work together to raise prices

Researchers have found that, through trial and error, algorithms designed to adjust prices based on market data can learn to mimic price-fixing tactics, even without explicit programming to do so. Over time, they "learn" that it is more profitable to avoid price wars and keep prices high when competitors lower prices.

'The stock market' can be loosely defined as a set of exchanges and other places where shares of public companies are bought and sold.

Professional wrestling's lexicon comes from the carnival world, where the spectacle began.

A hedge funds timeline, from the 1940s onward

Since Alfred Winslow Jones formed the first hedge fund in 1949, traders have rolled out an increasingly complex array of investment strategies. They all aim to beat increasingly efficient markets and/or to provide ample downside protection against sell-offs.

The dot-com stock bubble taught Howard Marks about markets

Annual investment letters from Howard Marks, the billionaire cofounder of top distressed debt shop Oaktree Capital Management, are required reading on Wall Street. The prolific writer and investor explains the distinction between the folly of trying to time the market and the necessity of paying attention to market cycles. The difference makes all the difference in returns.