Active Market
In prediction markets, an active market is one where participants are actively placing trades. Prices continue to update, and new information is being incorporated into probabilities.
An active market is usually open, but openness alone is not enough. Activity implies meaningful trading volume and engagement, not just technical availability. Markets can be open but inactive. In contrast, active markets show visible movement in prices, volume, or participation.
Activity often increases around news, deadlines, or high-interest events. It may slow down during quiet periods or after major information is absorbed.
For analysts, active markets provide the richest prediction markets data. They are ideal for studying behavior, responsiveness, and belief formation.
Why It Matters
Active markets produce the strongest signals. Knowing whether a market is active helps users focus on meaningful, information-rich data.
How is an active market different from an open market in prediction markets?
An open market allows trading, but it may have little or no activity. An active market shows ongoing trades and updates. Activity reflects engagement, while openness reflects availability. Analysts distinguish between the two to assess signal quality.
What indicators show that a prediction market is active?
Indicators include recent trades, non-zero trading volume, price movement, and multiple active traders. Stable but inactive markets may show no recent changes. Prediction markets data provides these signals clearly.
How should active markets be used in prediction markets data analysis?
Active markets are used for real-time monitoring, reaction analysis, and behavior detection. Analysts often prioritize them for alerts and signal extraction. Inactive markets are treated cautiously or excluded. Activity filtering improves data relevance.
Real-World Example
On Polymarket, a high-profile election market may show continuous price updates and high volume. This indicates an active market with strong participation.
Active Market and FinFeedAPI
FinFeedAPI’s Prediction Markets API provides prediction markets data needed to identify active markets. Analysts can use volume, price updates, and timestamps to detect activity. This supports real-time monitoring, market selection, and behavior analysis. The API enables consistent identification of active markets across prediction markets.