> ## Documentation Index
> Fetch the complete documentation index at: https://dexbuilder.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Positions & Outcome Tokens

> Understand outcome tokens, Event Contracts positions, position value, and PnL calculations.

Every outcome in an Event Contract is represented by an outcome token. Trading essentially means buying or selling these outcome tokens; a position in a Market is the user's balance of the corresponding outcome token.

![Image](https://mintcdn.com/dexbuilder/HmQKrNhFx36mwspk/images/image-3.png?fit=max\&auto=format\&n=HmQKrNhFx36mwspk\&q=85\&s=c63e92b6d201a3f170204fae0bf9bab4)

## Outcome Tokens

A binary Market typically contains two outcome tokens:

| Token | Redeemable for 1 USDT When | If the Outcome Loses |
| - | - | - |
| Yes | The event occurs | Becomes worthless |
| No | The event does not occur | Becomes worthless |

Outcome tokens use the [Gnosis Conditional Token Framework](https://docs.gnosis.io/conditionaltokens/) (CTF) and exist as ERC-1155 assets.

Each Yes / No outcome pair is fully collateralized. One Yes + No pair in the system corresponds to 1 USDT of collateral.

## Trading

Most users build or reduce positions by buying and selling outcome tokens through the order book.

* Buy 1 Yes at `$0.60`: pay `$0.60` and receive 1 Yes Token.
* Sell 1 Yes at `$0.60`: transfer 1 Yes Token and receive `$0.60`.
* Before settlement, a position can be exited by selling whenever liquidity is available.

## Redemption

After a Market settles, winning outcome tokens can be redeemed for USDT:

| Settlement Result | Yes Token | No Token |
| - | - | - |
| Event occurs | Worth `$1` each | `$0` |
| Event does not occur | `$0` | Worth `$1` each |

## Position Value

The current value of a position depends on the token balance and market price:

```text theme={null}
Position Value = Token Quantity × Current Price
```

For example, if you hold 100 Yes shares and the current price is `$0.75`:

```text theme={null}
Position Value = 100 × $0.75 = $75
```

## Profit and Loss

Final PnL depends on the entry cost, exit price, or the Market's final settlement result.

### Example: Buy Yes at 0.40

| Scenario | Result | Value Recovered per Share | PnL per Share |
| - | - | - | - |
| Event occurs | Yes wins | `$1.00` | `+$0.60` (150%) |
| Event does not occur | No wins | `$0.00` | `-$0.40` (-100%) |

### Sell Before Settlement

You can also exit before settlement:

* buy Yes at `$0.40`;
* the market price rises to `$0.70`;
* sell at `$0.70`, realizing `$0.30` profit per share.


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