> ## 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, Prediction Markets positions, position value, and PnL calculations.

Every outcome in a Prediction Market 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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