Dustin Gallagher of The Closing Line joins Errol on Risk and Reward to explain how prediction markets actually function, and why they look a lot more like an exchange than a sportsbook. On a prediction market you trade against other participants rather than a single house, you can use limit orders, and you can close a position early as long as someone will take the other side. 📊 tastylive: tastylive.com 📰 Get Tom's pre-market analysis every morning: tastylive.com/newsletters 📘 FREE Options Strategy Guide: tinyurl.com/bp9ms763 📱 Follow tastylive on X: x.com/tastyliveshow Chapters 00:00 From poker to prediction markets 00:45 Trading, not gambling 00:49 What an event contract is 02:22 How the volume grew 04:04 Where it looks like day trading 05:19 Speculation is most of the activity 06:26 Could you hedge a portfolio with it 08:07 Stock perps may be coming 08:31 The misconceptions 09:55 Why it is not a truth machine 11:10 Trade small, trade o...