> For the complete documentation index, see [llms.txt](https://truemarkets.gitbook.io/truemarkets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://truemarkets.gitbook.io/truemarkets/trading.md).

# Trading

Truemarkets is a binary prediction market, meaning that a market must reduce down to a question with yes/no answers.

Outcomes are priced in real-time based on the free-market perceived odds of various results. They are priced by traders and market makers who provide YES and NO token liquidity.

When a market is resolved, the token corresponding to the correct resolution is redeemable, and the opposing token expires worthless.

E.g.) If a market resolves to YES, then every 1 YES token becomes redeemable for $1, while every NO token expires worthless, and vice versa.

Trading YES/NO tokens is completely non-custodial in Truemarkets. All trading is done directly onchain through Uniswap V3. At no point do the Truemarkets contracts have access to, or control over, the trading of YES/NO tokens.

To predict the outcome for a market, users simply purchase the token corresponding to the outcome they prefer. If a user purchases YES tokens for 50c and the market resolves to YES, the user can redeem their YES tokens for $1 each, effectively capturing 100% profit from the trade (minus fees).

To purchase YES or NO tokens, users simply approve their USDC for spend and place a bet. Directly above the buy button, the trade summary displays the exact quote, conversion rate, and price impact for the trade.

<figure><img src="/files/bqVVgoXYP3fKel1oZYM9" alt=""><figcaption></figcaption></figure>

In the image above, for a $300 trade, the user:

* receives a quote of 1502.6 YES tokens&#x20;
* has an average price of $0.20 per YES token&#x20;
* causes a price impact of 0.35% and moves the price of YES to $0.21


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