An orderbook prediction market uses a simple idea: traders place bids to buy outcome shares and asks to sell them. When a bid meets an ask, a trade happens and the price updates. This means all market probabilities come directly from how traders value the event at each moment.
Unlike automated market maker systems, an orderbook market doesn’t adjust prices automatically. Instead, prices stay where they are until someone posts an order that shifts the market. This structure gives traders more freedom but also requires enough activity to keep the market moving smoothly.
Orderbook prediction markets work best when communities are active and trades happen often. With enough liquidity, they generate detailed prediction markets data that shows how confidence changes through real negotiation. The full orderbook—bids, asks, and volumes—offers a rich picture of sentiment before trades even occur.
Orderbook prediction markets produce transparent forecasts that reflect real supply and demand for outcome shares. They offer granular data on how beliefs shift and give analysts a deeper look into market behavior when liquidity is strong.
Some prediction markets choose an orderbook model because it gives traders more control over pricing. Instead of relying on a formula, users decide the exact price they are willing to buy or sell at. This leads to forecasts shaped by real negotiation, which can be valuable when participation is high. The structure also enables advanced strategies, making it attractive for experienced traders. When active, these markets generate rich and highly responsive prediction markets data.
Liquidity is one of the most important factors in an orderbook prediction market. With many bids and asks, trades execute quickly and prices update smoothly. Low liquidity, however, can create wide spreads and slow movement, making signals less reliable. Analysts may see big jumps simply because very few orders exist at certain prices. This is why orderbook models perform best in active communities with consistent trading.
Orderbook prediction markets reveal more than just the last trade price. Analysts can study the full depth of bids and asks to see how confident traders are at different probability levels. Changes in the orderbook often show sentiment shifts before they appear in executed trades. This creates detailed prediction markets data that helps identify early signals and track evolving expectations. Over time, these patterns offer a deeper view of how forecasts develop.
A prediction market tracking whether a new law will pass shows a cluster of bids around 60% and asks near 62%. As news breaks, the bids rise and sellers adjust their asks downward until a trade executes at 61%. The resulting price path reflects real negotiation between traders reacting to the latest information.
Orderbook prediction markets create layered prediction markets data that includes bids, asks, trades, and historical probability paths. FinFeed's Prediction Markets API provides structured access to this data, helping developers track how orderbook dynamics shape forecasts, build tools around real-time sentiment shifts, and analyze how market beliefs evolve over time.
