zhutoutoutousan
201 lines
6.3 KiB
Markdown
201 lines
6.3 KiB
Markdown
# Polymarket Glossary
|
|
|
|
Complete terminology reference for Polymarket prediction markets.
|
|
|
|
## Core Concepts
|
|
|
|
### Prediction Market
|
|
A market where participants trade contracts based on the outcome of future events. Prices represent the market's collective probability assessment.
|
|
|
|
### Market
|
|
A specific question with binary or multiple outcomes. Each market resolves to one outcome based on real-world events.
|
|
|
|
### Event
|
|
A collection of related markets. For example, an election event may contain multiple markets for different races.
|
|
|
|
### Outcome
|
|
A possible result of a market. Binary markets have two outcomes: "Yes" and "No".
|
|
|
|
### Token
|
|
A conditional token representing a position in a specific outcome. Each outcome has its own token (e.g., "Yes Token", "No Token").
|
|
|
|
### CLOB Token ID
|
|
A unique identifier for a conditional token in the CLOB (Central Limit Order Book) system. Used for trading and order placement.
|
|
|
|
## Trading Terms
|
|
|
|
### Bid
|
|
An offer to buy tokens at a specified price. The highest bid is the best bid.
|
|
|
|
### Ask
|
|
An offer to sell tokens at a specified price. The lowest ask is the best ask.
|
|
|
|
### Spread
|
|
The difference between the best ask and best bid prices. Represents the cost of immediate execution.
|
|
|
|
### Mid Price
|
|
The average of the best bid and best ask: `(bid + ask) / 2`. Often used as a fair value estimate.
|
|
|
|
### Order Book
|
|
A list of all open buy (bids) and sell (asks) orders for a token, sorted by price and time.
|
|
|
|
### Market Depth
|
|
The total volume available at each price level in the order book. Indicates liquidity.
|
|
|
|
### Price Impact
|
|
The change in price caused by executing a trade of a given size. Larger trades typically have higher price impact.
|
|
|
|
### Slippage
|
|
The difference between expected execution price and actual execution price. Caused by consuming multiple order book levels.
|
|
|
|
### Liquidity
|
|
The ease with which tokens can be bought or sold without significantly affecting the price. High liquidity = tight spreads and deep order books.
|
|
|
|
## Position Management
|
|
|
|
### Position
|
|
An open trade holding tokens in a specific outcome. Can be long (holding Yes tokens) or short (holding No tokens).
|
|
|
|
### Entry Price
|
|
The average price at which a position was opened.
|
|
|
|
### Exit Price
|
|
The price at which a position is closed.
|
|
|
|
### Unrealized PnL
|
|
Profit or loss on an open position, calculated from current market price.
|
|
|
|
### Realized PnL
|
|
Profit or loss from a closed position.
|
|
|
|
### Equity
|
|
Total account value: `balance + unrealized_pnl`
|
|
|
|
### Balance
|
|
Available USDC (USD Coin) for trading.
|
|
|
|
## Market Resolution
|
|
|
|
### Resolution Date
|
|
The date and time when a market resolves based on the outcome of the event.
|
|
|
|
### Resolution Source
|
|
The authoritative source used to determine the outcome (e.g., official election results, sports league data).
|
|
|
|
### Disputed Resolution
|
|
A market resolution that is challenged by participants. May require manual review.
|
|
|
|
### Settlement
|
|
The process of distributing payouts to winning positions after market resolution.
|
|
|
|
## Performance Metrics
|
|
|
|
### Win Rate
|
|
Percentage of profitable trades: `(winning_trades / total_trades) * 100`
|
|
|
|
### Profit Factor
|
|
Ratio of total profit to total loss: `abs(total_profit / total_loss)`. Values > 1 indicate profitability.
|
|
|
|
### Sharpe Ratio
|
|
Risk-adjusted return metric. Higher values indicate better risk-adjusted performance.
|
|
|
|
### Sortino Ratio
|
|
Similar to Sharpe ratio but only considers downside volatility.
|
|
|
|
### Maximum Drawdown
|
|
The largest peak-to-trough decline in equity during a trading period. Expressed as a percentage.
|
|
|
|
### Calmar Ratio
|
|
Return divided by maximum drawdown. Higher values indicate better risk-adjusted returns.
|
|
|
|
### Expectancy
|
|
Expected profit per trade: `(win_rate * avg_win) - ((1 - win_rate) * avg_loss)`
|
|
|
|
## API Terms
|
|
|
|
### Rate Limit
|
|
Maximum number of API requests allowed per time period. Exceeding limits results in 429 errors.
|
|
|
|
### API Key
|
|
Authentication credential for accessing authenticated endpoints.
|
|
|
|
### Signature Type
|
|
Method of authentication:
|
|
- `0`: EOA (Externally Owned Account) - standard wallet
|
|
- `1`: POLY_PROXY - proxy contract
|
|
- `2`: GNOSIS_SAFE - Gnosis Safe multisig
|
|
|
|
### Funder Address
|
|
Wallet address used to fund trades and pay gas fees.
|
|
|
|
### Chain ID
|
|
Blockchain network identifier:
|
|
- `137`: Polygon mainnet (production)
|
|
- `80001`: Mumbai testnet (testing)
|
|
|
|
## Strategy Terms
|
|
|
|
### Signal
|
|
A trading recommendation generated by a strategy, including:
|
|
- Action: BUY, SELL, or HOLD
|
|
- Token ID: Which outcome to trade
|
|
- Size: Position size
|
|
- Confidence: Strategy's confidence level (0.0 to 1.0)
|
|
|
|
### Confidence
|
|
A strategy's assessment of signal quality, typically between 0.0 (low) and 1.0 (high). Used to filter trades.
|
|
|
|
### Risk Management
|
|
Rules and limits to protect capital:
|
|
- Maximum position size
|
|
- Maximum total exposure
|
|
- Stop losses
|
|
- Position limits
|
|
|
|
### Backtesting
|
|
Simulating strategy performance on historical data to evaluate profitability before live trading.
|
|
|
|
### Paper Trading
|
|
Trading with simulated funds to test strategies without financial risk.
|
|
|
|
## Market Types
|
|
|
|
### Binary Market
|
|
A market with exactly two outcomes: Yes and No. Most common market type.
|
|
|
|
### Scalar Market
|
|
A market with a range of possible outcomes (e.g., "Bitcoin price will be between $50k-$60k").
|
|
|
|
### Multi-Outcome Market
|
|
A market with more than two discrete outcomes (e.g., "Which team will win?" with multiple teams).
|
|
|
|
## Tag Categories
|
|
|
|
Common market categories identified by tag IDs:
|
|
|
|
- **Crypto** (tag_id: 21): Cryptocurrency-related markets
|
|
- **Politics** (tag_id: varies): Political events and elections
|
|
- **Sports** (tag_id: varies): Sports betting markets
|
|
- **Economics** (tag_id: varies): Economic indicators and events
|
|
- **Technology** (tag_id: varies): Tech industry events
|
|
|
|
## Common Abbreviations
|
|
|
|
- **CLOB**: Central Limit Order Book
|
|
- **PnL**: Profit and Loss
|
|
- **USDC**: USD Coin (stablecoin)
|
|
- **EOA**: Externally Owned Account
|
|
- **API**: Application Programming Interface
|
|
- **REST**: Representational State Transfer (API protocol)
|
|
- **WebSocket**: Real-time communication protocol
|
|
- **JSON**: JavaScript Object Notation (data format)
|
|
|
|
## Price Notation
|
|
|
|
Prices in Polymarket are represented as probabilities between 0.0 and 1.0:
|
|
- `0.50` = 50% probability = $0.50 per share
|
|
- `0.75` = 75% probability = $0.75 per share
|
|
- `1.00` = 100% probability = $1.00 per share (guaranteed outcome)
|
|
|
|
For binary markets, Yes + No prices should sum to approximately 1.0 (accounting for spread).
|