covariance markets

Markets that trade on the correlation between events, allowing positions on how outcomes relate to each other.

Cluster: Liquidity & Trading

Related Concepts

• parlays — Multi-leg bets combining outcomes across several events, offering higher payoffs at lower probability.
• liquidity provision — Supplying capital so traders can buy and sell positions without excessive price impact or delays.

Articles about covariance markets

• How to Offer Prediction Market Parlays Without Fragmenting Liquidity by Chicken