Start with the market, not the jargon
A glossary should make a market page easier to read, not create a new layer of homework. Start with the exact question and its rules. Then use the terms below to work out what the price means, which side of the book applies to you, and what happens if the market resolves.
| If you need to know… | Start with these terms | The practical check |
|---|---|---|
| What the contract actually asks | Market, outcome, resolution rules | Read the wording, source, deadline and edge cases. |
| What the number on screen represents | Price, implied probability, midpoint, last trade | Keep a market signal separate from a guarantee. |
| What an order could receive now | Bid, ask, spread, depth | Inspect the live side and size relevant to your action. |
| What happens at the end | Resolution, redemption, position | Confirm the rules before relying on a possible $1 payout. |
Market and outcome terms
- Market
- A contract built around a specific question with stated outcomes and resolution rules. A topic page can help you find it; the individual market is what you are evaluating.
- Outcome
- One possible result in a market, such as Yes or No. Trading an outcome means trading the token associated with that result, not buying the underlying event itself.
- Outcome token
- The token representing one outcome. Its value before resolution moves with trading interest; after resolution, the winning token is redeemable and the losing token is not.
- Position
- The outcome tokens you hold after a trade. A position can be sold before resolution if a buyer is available, or held until the market resolves.
- Resolution rules
- The market-specific instructions for deciding the outcome: they name the resolution source, timing and relevant edge cases. They matter more than a headline that appears obvious.
Price and order-book terms
- Price
- The cents value attached to an outcome token, between $0 and $1. It expresses the market’s current view of that outcome, not a certainty or necessarily the price a new order can get.
- Implied probability
- A way of reading a price as a percentage: 63¢ is commonly read as a 63% market-implied probability. It is a live market signal, not a forecast guarantee.
- Order book
- The live list of open buy and sell offers for an outcome. It is where a displayed price becomes a practical execution question.
- Bid
- An offer to buy. The best bid is the highest available buy offer and is the side an immediate seller would normally meet.
- Ask
- An offer to sell. The best ask is the lowest available sell offer and is the side an immediate buyer would normally meet.
- Spread
- The gap between the best bid and best ask. A narrow spread puts the closest buyer and seller nearer together; it does not prove there is enough size for your order.
- Depth
- The available size at the best price and at further price levels. It matters when your order is larger than the first visible offer.
- Midpoint
- The average of the best bid and ask. It can be useful for reading the middle of the market, but neither side has necessarily offered to trade at it.
- Last trade
- The price at which a previous trade matched. It records a past execution, not a promise that the same price is still waiting in the book.
Order and execution terms
- CLOB
- Central limit order book. Polymarket uses this system to hold and match compatible participant orders; prices emerge from those offers rather than being set by the platform.
- Limit order
- An order that states the price and size you are willing to accept. It can rest in the book until someone matches it, or it can match immediately if its price is already compatible.
- Market order
- In practical terms, an order intended to execute promptly against available offers. Polymarket describes these as limit orders priced to cross the book, so the available ask or bid still matters.
- Maker
- A participant whose order rests in the book and adds available liquidity. This is a role in a particular match, not a permanent account type.
- Taker
- A participant whose order matches an offer already resting in the book and removes available liquidity. Fees can apply to takers in certain markets, so the exact market details still matter.
- Fill
- The part of an order that actually matches. An order can fill fully, fill partly, remain open or fail to match if the book changes.
- Slippage
- The difference between the price you expected from the first visible level and the prices reached as an order meets more of the book. It becomes more relevant when depth is thin relative to your size.
Resolution and payout terms
- Resolution
- The process that determines which outcome wins under the market’s rules. When resolution is complete, trading stops for that market.
- Redeem
- To exchange a winning outcome token after resolution for its $1 payout. A losing outcome token has no redemption value.
- pUSD
- The collateral token named in Polymarket’s current trading documentation. Matched trades transfer pUSD and outcome tokens between trading accounts; do not confuse that settlement detail with a bank balance or a country-availability claim.
- Settlement
- The transfer that finalizes a matched trade on the blockchain. Settlement is distinct from market resolution: a trade can settle long before the underlying question has an answer.
Terms that need more than a definition
Imagine an invented outcome with a 47¢ best bid and a 53¢ best ask. Its midpoint is 50¢, which may look like a clean 50% signal. But an immediate buyer meets the 53¢ ask and an immediate seller meets the 47¢ bid, provided that visible size remains. The definition is easy; the decision depends on the live book.
Resolution has the same trap. “Winning shares redeem for $1” is a useful rule, but it is incomplete until you read which outcome the market rules say wins. I would rather spend the extra minute on the question and rules than pretend a familiar term makes an unfamiliar market straightforward.
Frequently Asked Questions
What is the Polymarket glossary for?
The Polymarket glossary gives short definitions for the market, price, order-book and resolution terms used across the platform. It helps you identify a term quickly, but it does not replace reading the exact market question, rules and available orders.
What does CLOB mean on Polymarket?
CLOB means central limit order book. On Polymarket, it is the system that holds compatible buy and sell orders until they match; participants supply prices instead of Polymarket setting one fixed price.
What is the difference between a Polymarket bid and ask?
A Polymarket bid is an offer to buy an outcome, while an ask is an offer to sell it. An immediate buyer normally meets an available ask, and an immediate seller normally meets an available bid while that size remains in the book.
Is a Polymarket price a forecast or a guaranteed trade price?
A Polymarket price is a market-derived signal, not a guaranteed real-world outcome or execution price. The visible number can be a midpoint or a last trade, while an immediate order depends on the live bid, ask and available size.
Where do I check how a Polymarket market will resolve?
Check the individual Polymarket market’s resolution rules before taking a position. They define the resolution source, timing and edge cases for that specific question; the market title alone is not enough.
Read the market behind the terms
Use the glossary to orient yourself, then inspect the exact question, rules and live order book before turning a displayed price into a decision.