Polymarket glossary: quick reference for prediction-market terms

यह Polymarket glossary पृष्ठ आपको उन मुख्य शब्दों का एक केंद्रीकृत संदर्भ देता जिसे आप Polymarket और PolyArb पर देखेंगे। यदि आप संक्षिप्त परिभाषा और विस्तृत लेख के लिंक चाहते हैं, तो यहाँ शुरू करें — नीचे प्रत्येक शब्द एक समर्पित glossary प्रविष्टि की ओर इशारा करता है जो व्यावहारिक रूप में उस अवधारणा को समझाती है।

Key takeaways

• The Polymarket glossary collects the vocabulary you’ll encounter when trading on Polymarket: marketplace mechanics, tokens, order types, and market-data terms.
• Use the links below to jump to full entries (examples: CLOB, CTF, pUSD).
• Knowing these terms speeds up reading order books, interpreting spreads, and following guides like our arbitrage series.

How to use this page

Each bullet below is a one-line definition plus a short note about where the term matters. Click through to the full glossary entry for examples, visuals, and internal links.

• CLOB — Central Limit Order Book. See /glossary/clob for how Polymarket matches orders and where to watch best bid/ask and midpoint.
• CTF — Conditional Token Framework. See /glossary/ctf for how outcome shares are ERC-1155 tokens and how split/merge/redeem works.
• pUSD — Polymarket’s wrapped USDC trading asset. See /glossary/pusd for funding, balances, and the relayer model.
• FAK — Fill-And-Kill market orders (the default market-order behaviour on Polymarket). See /glossary/fak for slippage and execution notes.
• Spread — The difference between best bid and best ask; fundamental to arbitrage and liquidity assessment. See /glossary/spread.
• Midpoint — The average of best bid and best ask; often used as a quick fair-value proxy. See /glossary/midpoint.

Why these terms matter to traders

Polymarket is a prediction-market exchange built on a CLOB, with outcome shares issued via a CTF and traded in pUSD. That stack creates a vocabulary you’ll meet constantly: order-book rows (CLOB), outcome tokens (CTF), the stable token (pUSD), and order mechanics (FAK). Understanding the words helps you parse market data, examine spreads, and read our arbitrage guides.

Polymarket-specific notes

• All trading on Polymarket settles in pUSD on Polygon; gas is sponsored by Polymarket’s Relayer.
• Order books, tick sizes, and execution types are part of the CLOB — see the CLOB entry for real-time data sources and socket details.
• CTF operations (split/merge/redeem) are how you create or settle complete sets of outcome tokens; these operations appear whenever you want to convert pUSD into outcome exposure or redeem winning shares.

How these definitions map to PolyArb guides

If you’re learning arbitrage, start with these entries and then read the related guides:

• Read /glossary/spread and /glossary/midpoint before the arbitrage strategy pages.
• The mechanics in /glossary/ctf are referenced in our combinatorial-arbitrage guide.
• The FAK and CLOB entries are useful before using the CLOB API or the Market WebSocket; see /guides/polymarket-clob-explained for API pointers.

Practical examples (where you’ll see the words)

• You’ll see "best bid" and "best ask" in the CLOB order book; their difference is the spread. Wide spreads can create arbitrage opportunities but also increase execution risk.
• When you place a market order on Polymarket, it is executed as a FAK order: it fills immediately against resting orders and cancels any unfilled remainder.
• To lock in an intra-market arbitrage on a multi-outcome market you may buy a complete set via CTF split, paying out of pUSD, then merge or redeem after resolution.

Where to go next

• If you want market-data detail, open the CLOB entry (/glossary/clob) and then read /guides/polymarket-clob-explained.
• If you’re unfamiliar with how outcome tokens work, read /glossary/ctf.
• For quick trading mechanics and how orders execute, read /glossary/fak and /glossary/midpoint.

How this affects your trading

A clean glossary reduces avoidable mistakes: you’ll place appropriate order types, interpret spreads correctly, and know which operations (split/merge/redeem) change your on-chain holdings. These words are the bridge between the UI, the APIs, and our arbitrage guides — use the linked entries before you try live strategies.

Closing

The Polymarket glossary is a living resource. Start with the linked entries above, then follow the recommended guides for practical examples and API references. The primary value is speed: knowing these terms shortens the time between seeing a market and understanding what action (if any) makes sense.

Frequently asked questions

What is the difference between Spread and Midpoint?

Spread is the numeric difference between the best bid and best ask on the CLOB; midpoint is their average and is often used as a quick fair-value estimate. Spread measures liquidity and execution cost; midpoint is a convenience for price comparisons.

Why does Polymarket use pUSD instead of USDC directly?

Polymarket trades in pUSD, its wrapped USDC, to support the platform’s relayer model and settlement mechanics. See the pUSD glossary entry for details about balances and funding.

What does FAK mean for market orders?

FAK (Fill-And-Kill) market orders execute immediately against the order book and cancel any unfilled portion. That behaviour limits exposure to adverse selection but can produce partial fills if liquidity is shallow.

Where do I find the full glossary entries?

Each term on this page links to a dedicated glossary entry under /glossary/[term]. Start with /glossary/clob, /glossary/ctf, and /glossary/pusd to cover the fundamental mechanics.

Are glossary definitions the same as Polymarket’s documentation?

Glossary entries on PolyArb are written to explain how terms appear in practice on Polymarket and to link to primary sources when necessary. For official platform docs, consult Polymarket’s website and APIs.