Initial Price

• When a market is created, there are initially zero shares and no pre-defined prices or odds.

• Market makers (a fancy term for traders placing limit orders) interested in buying YES or NO shares can place Limit Orders at the price they're willing to pay

• When offers for the YES and NO side equal $1.00, the order is "matched" and that $1.00 is converted into 1 YES and 1 NO share, each going to their respective buyers.

For example, if you place a limit order at $0.60 for YES, that order is matched when someone places a NO order at $0.40. This becomes the initial market price.

<Important>Polymarket is not a "bookie" and does not set prices / odds. Prices are set by what Polymarket users are currently willling to buy/sell shares at. All trades are peer-to-peer.</Important>