The Behavioural Science Behind Prediction Markets

When looking back at 2025, it is hard to deny that one of the hottest trends was prediction markets. Few other developments captured the attention of investors, except perhaps gold trading. Certainly, nothing else attracted as much venture capital. There is a clear reason why investors believe in prediction markets. There is also a less obvious reason why they are so appealing. Finance Magnates explores the subject, explaining how this phenomenon works and what lessons it holds for the CFD industry.