Prediction market system and methods
Systems and methods for operating a prediction market, including methods for finding disagreement with the consensus among participants and methods for managing liquidity. Also, an interactive user interface to facilitate investing, with one user action, in a prediction market.
1. A prediction market system comprising:
a computer system comprising a server computer and at least one database in communication over a network, wherein the at least one database is in communication over the network with at least one remote computing device, the server computer running a software providing:
an automated market maker;
a liquidity management system (LMS) with administrative controls for the automated market maker; and
an investment transaction graphical user interface (GUI) that allows selection of an amount of points or an amount of money for buying, selling, or short-selling a stock,
wherein the investment transaction GUI permits automated management of the LMS;
wherein the automated market maker creates liquidity in the system by providing ongoing buy, sell, and short-sell orders that are spaced in a price ladder;
wherein the automated market maker automatically calculates and displays in the investment transaction GUI the amount of the stock a user is to receive or sell in a prediction market; and
wherein the administrative controls include sensitivity, quantity, fulcrum and window, and wherein the administrative controls adjust a liquidity value.
2. The system of claim 1 , wherein the investment transaction GUI automatically provides a stock price as an actual value of a forecast for the prediction market system.
3. The system of claim 1 , wherein the automated market maker provides for double auction by incorporating limit orders.
4. The system of claim 1 , wherein the stock is grouped with other stocks but not linked to the other stocks.
5. The system of claim 1 , wherein the stock is grouped with other stocks and is linked to the other stocks, wherein each of the stocks in the group has a percent probability and the grouped stocks are linked such that the sum of the percent probabilities is 100.
6. The system of claim 1 , wherein the GUI includes an interactive slider, wherein slider action in a first direction indicates selling or short-selling and slider action in the opposite direction indicates buying.
7. A computer-readable code stored in a non-transitory storage medium and executable by one or more processors, comprising:
an automated market maker;
a liquidity management system (LMS) with administrative controls for an automated market maker for sensitivity, quantity, fulcrum and window, wherein the administrative controls adjust a liquidity setting; and
an investment transaction graphical user interface (GUI),
wherein the investment transaction GUI permits automated management of the LMS;
wherein the automated market maker creates liquidity in the system by providing ongoing buy, sell, and short-sell orders that are logarithmically spaced in a price ladder;
the automated market maker operable to automatically calculate and display an amount of stock to be received or sold in the investment transaction GUI.
8. The computer-readable code of claim 7 , wherein the investment transaction GUI further includes a slider that allows for selection of the amount of stock to buy or sell based upon an amount of money or an amount of points, wherein slider action in a first direction indicates selling or short-selling and slider action in the opposite direction indicates buying.
9. The computer-readable code of claim 8 , wherein the slider is operable to be displayed in the GUI upon selection of a trade button, wherein upon selection of the trade button the slider overlays existing content in the GUI.
10. The computer-readable code of claim 8 , wherein the slider allows one-step user selection to choose the amount of stock to buy or sell.
11. The computer-readable code of claim 8 , wherein the slider permits the buying, selling and short selling of shares and options with the slider in a single action.
12. A computer-readable code stored in a non-transitory storage medium and executable by one or more processors, comprising:
an automated market maker;
a liquidity management system (LMS) having administrative controls that adjust a liquidity setting; and
an interactive user investment transaction graphical user interface (GUI),
wherein the investment transaction GUI permits automated management of the LMS;
wherein the automated market maker creates liquidity in the system by providing ongoing buy, sell, and short-sell orders that are spaced in a price ladder;
wherein the investment transaction GUI displays the amount of stock a user is to receive or sell in a prediction marketplace; and
wherein the investment transaction GUI further includes a slider for choosing the amount of stock to buy or sell, the slider permitting buying and selling shares in a single sliding action.
13. The computer-readable code of claim 12 , wherein the slider is operable to be displayed in the investment transaction GUI upon selection of a trade button, wherein upon selection of the trade button the slider overlays existing content in the investment transaction GUI.
14. The computer-readable code of claim 12 , wherein slider action in a first direction indicates selling or short-selling and slider action in the opposite direction indicates buying.
15. The computer-readable code of claim 12 , wherein administrative controls provide for selective adjustment of the quantity and sensitivity, fulcrum, and/or window.
16. The computer-readable code of claim 12 , wherein the automated market maker automatically calculates and displays in the investment transaction GUI the amount of stock the user is to buy or sell, or short sell.