How to profit?

In the previous example, a trader who believes there is a higher than 65% chance that the US FOMC will keep the interest rate unchanged could place a limit order to buy ‘Yes’ shares at 65c each. If the order is successfully filled and the FOMC indeed makes no change, those shares will settle at $1, resulting in a 35c profit per share. This equates to a 53.85% return (35c gain on a 65c cost). Conversely, traders holding ‘No’ shares would lose their investment as those shares would settle at $0.

Moreover, after your order is filled, you can buy or sell your shares at any time before the market resolves, you don’t need to wait until the final decision date to realize your gains. For instance, you could have purchased ‘Yes’ shares in a market like “Will the US FOMC keep the interest rate unchanged?” for 20c, and later sold them for 70c if the market’s expectations shifted—locking in your profit before the event concludes.