Prediction markets, also known as information markets or idea futures, are a type of exchange-traded market where traders can buy and sell contracts based on the outcome of future events. These events can include:

1. Political elections

2. Sports games and tournaments

3. Awards shows (e.g., Oscars)

4. Natural disasters (e.g., hurricane landfall)

5. Economic indicators (e.g., GDP growth)

Prediction markets allow traders to speculate on the probability of a particular outcome, and the prices of the contracts reflect the market's collective belief in the likelihood of that outcome. The contracts typically pay out a fixed amount if the predicted outcome occurs, and nothing if it doesn't.

Some key characteristics of prediction markets include:

1. Event-driven: Contracts are based on specific events or outcomes.

2. Binary outcomes: Most contracts have only two possible outcomes (e.g., win or lose, yes or no).

3. Probability-based pricing: Contract prices reflect the market's estimated probability of the outcome.

4. Speculative: Traders bet on the outcome, rather than hedging against risk.

5. Information aggregation: Prediction markets can aggregate information and opinions from a large number of traders, providing a collective forecast of the outcome.

Prediction markets have been used for various purposes, including:

1. Political forecasting

2. Sports betting

3. Entertainment (e.g., predicting Oscar winners)

4. Economic forecasting

5. Research and analysis (e.g., studying market sentiment)

Keep in mind that prediction markets are subject to local regulations and restrictions, and traders should thoroughly understand the terms and conditions before participating.