Execution Priority
Execution priority defines how a market decides the order in which trades are executed. This usually depends on factors like timing, price, or order size. When many traders act at once, priority rules decide whose trades go through first and whose wait.
In prediction markets, execution priority matters most during fast-moving moments. When news breaks or probabilities shift quickly, traders rush to enter or exit positions. On platforms like Polymarket, Kalshi, Myriad, and Manifold, execution priority shapes short-term outcomes by rewarding speed, better pricing, or both. This behavior shows up in prediction markets data as sudden fills, missed entries, or partial executions.
Execution priority does not change the long-term forecast, but it strongly affects short-term trading results and market microstructure.
Why It Matters
Execution priority influences fairness, efficiency, and trader experience. It affects how prediction markets data forms during high-activity periods.
How does execution priority work in prediction markets?
Priority is usually based on price and timing. Orders offering better prices are filled first, and earlier orders are often favored when prices are equal. During high volume, this determines who captures early moves and who trades later at worse prices. These mechanics are reflected in prediction markets data during volatile periods.
Why does execution priority matter during breaking news?
When probabilities move fast, milliseconds can matter. Traders with higher execution priority may enter before prices adjust, while others face slippage. This creates visible patterns in prediction markets data, such as sharp jumps followed by rapid stabilization.
What insights can analysts gain from execution priority effects?
Analysts can understand how market structure influences short-term price moves, detect speed-driven advantages, and explain why some moves happen abruptly. Studying execution order helps separate information-driven changes from mechanical effects in prediction markets data.
Real-World Example
After a sudden announcement, a Polymarket market shifts rapidly. Early buy orders execute at favorable prices, while later orders fill at higher probabilities. The difference reflects execution priority rather than differing beliefs.
Execution Priority and FinFeedAPI
Analyzing execution priority requires fine-grained timing and price data. FinFeed's Prediction Markets API provides structured prediction markets data—time-stamped prices, trades, and OHLCV—that developers can use to study execution order, slippage, and short-term market behavior.