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Each market on Polymarket US has one instrument representing a specific outcome. You take positions by buying or selling (shorting) that single instrument.

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How It Works

Every binary market has only one instrument:
  • Buying the instrument = betting YES on that outcome
  • Selling (shorting) the instrument = betting NO on that outcome
Example: NFL game between Team A and Team B
  • There is one instrument: “Team A wins”
  • Go long (buy) = you think Team A will win
  • Go short (sell) = you think Team A will lose (Team B wins)

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Buying vs Shorting

Buying (Going Long)
  • You pay the current price (e.g., $0.70)
  • If the outcome happens, you receive $1.00
  • If the outcome doesn’t happen, you receive $0.00
  • Maximum profit: $1.00 minus purchase price
  • Maximum loss: your purchase price
Shorting (Going Short)
  • You receive the current price (e.g., $0.70)
  • If the outcome happens, you pay $1.00
  • If the outcome doesn’t happen, you pay $0.00
  • Maximum profit: sale price
  • Maximum loss: $1.00 minus sale price
For more details on shorting mechanics, see the Shorting chapter.

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Synthetic No Position

There are no separate “No” shares to trade. Instead:
  • To bet NO on an outcome, you short the instrument
  • Shorting creates a synthetic NO position
  • The profit/loss works exactly as if you owned a NO share

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Key Points

  • Each market has one instrument per outcome
  • Buy to bet YES, short to bet NO
  • There are no separate YES and NO tokens
  • Prices reflect the market’s implied probability of the outcome