3 ms·
Not that sure about Polymarket, but Kalshi uses a limit order book and has incentives for market makers to provide liquidity. The prices are set by what people
by tripplyons 2y ago
Not that sure about Polymarket, but Kalshi uses a limit order book and has incentives for market makers to provide liquidity. The prices are set by what people are willing to buy and sell for, not by an algorithm.
- callmeed 2y agoOk, that's helpful but I'd argue even a limit order book has an algorithm (albeit simple)
- jairuhme 2y agoI think you are referring to the [order matching system](https://en.wikipedia.org/wiki/Order_matching_system https://en.wikipedia.org/wiki/Order_matching_system) of exchanges. This page lists a couple of the common and simple algos used.